GBP/USD holding the 1.5300 handle

FXstreet.com (Barcelona) - GBP/USD ticked down again after the release of ISM Non-Manufacturing PMI (Jul).

GBP/USD has managed to hold onto the 1.5300 handle despite the USD gaining after the number that arrived better than expected coming in as 56 vs a consensus of 53. Today has been relatively light on the calendar apart from that, with only UK Markit Services PMI (Jul) for Sterling that came in at 60.2 vs 57.2 consensus. Markets are waiting to hear the BoE inflation report for an indication of what is to come out next from Carney.

Sterling bearish bias

Should GBP fail to continue to the upside, the gap between 1.5160 and here looks vulnerable. And “then a loss of 1.5100 would suggest further losses to the 1.5015 May low and 1.4854/32 support zones. Intraday rallies are likely to remain capped by the 1.5356 resistance line and only should 1.5435 be eroded (not favoured) we will have to allow for further upside gains to 1.5551 the 78.6% retracement”,said Karen Jones, Head of FICC Technical Analysis at Commerzbank