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Sterling awaits services figures
The pound has bounced back against the dollar as a combination of strong UK construction figures and disappointing US factory orders gave traders twice the reason to buy against the dollar. GBP/USD has been plagued by downside pressure recently, and traders jumped at the chance to take advantage of the worse-than-expected figures from the US.
At 9.30am (London time) the UK will announce the services PMI report for January, and the market is expecting an increase from 55.8 in December to a reading of 56.6. It is worth noting that the services PMI accounts for over three quarters of the UK economy. The pound will receive some short-term buying should expectations be met.
GBP/USD is currently trading at $1.5152 and resistance will likely be encountered at $1.52. If this level is cleared it will make $1.5265 the target. Should $1.52 hold as resistance then the 200-hour moving average at $1.5080 will be brought into play.