Growth in the British services sector moderated for a fifth straight month in March, but remained strong enough to support expectations that gross domestic product growth should hit around 0.7 per cent in the first quarter of 2014. The data showed, Services PMI slipped to 57.6 in March. That was the lowest level since June 2013, much weaker than the expected increase of 58.5, and down from February's 58.2. The slowdown was due to slower growth across the sector -- new business growth slid to 58.5 from February's 59.2, while employment fell to 53.5 in March from 55.6, and business expectations hit a four-month-low of 72.8 in March, down from 74.7 a month earlier.
Technical view-
In the Asia's trading session, GBP/USD is taking support at the 50SMA level of 1.6587. The pair erases 50% of its gains from the 1.6465 levels. A day close below this level will push the pair to 1.6550 and 1.65 levels immediately. March 24 low at 1.6465 is the last hope for the bulls. For the long run perspective, the pair is in an uptrend with small corrections from 1.5854 levels. A day close below the 1.6465 level will terminate the uptrend pattern, and the pair will fall to 1.63, 1.6252 and 1.6211 levels. On the upside, if the pair trades above the 1.6603 level, it will fly up to 1.6666 and 1.6684 levels. Whereas the level of 1.6718 is the strong resistance levels for bulls. Once the pair breaks it, the levels of 1.6786 and 1.6823 will be on the chart.
For positional trades, a day close below the level of 1.6584, bear bells will ring up to the level of 1.6465 levels.
Intraday-
The pair is trading in a complete bearish zone. As of now, the pair is trading at 1.6590. On the up side, the pair is facing strong resistance levels between 1.6595-1.66. Above this, 1.6611 is the strong resistance levels. RSI is also in the down trend. Until a candle close above the 1.6611 level, bears will take the pair towards 1.655 and 1.65 on an intraday. On the up side, if the pair trades above the 1.6611 level, it will jump to 1.6646 and 1.6666 levels.
Intraday-
Sell with sl 1.6611 for targets 1.655 and 1.65.
Buy above 1.6611 for targets 1.6646 and 1.666.
joseph.wind@analytics.instaforex.com
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Fundamental analysis of GBP/USD for April 04, 2014 . Thanks for your support on Fundamental analysis of GBP/USD for April 04, 2014
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