GBP/USD: UK data heals the pound – Elam

Upbeat UK data seem to be beating Brexit fears as the cable has recovered from six-week lows. Yohay Elam, an analyst at FXStreet, glimpses a triple confluence around 1.3150.

Key quotes

“GBP/USD has benefited from the third consecutive beat, this time in the final Services PMI, which hit 53.9 points – the highest since 2018.”

“Traders are seeing a lower chance that the Bank of England – which left rates unchanged last week – slashes borrowing costs later this year.”

“The combination of a business-friendly government and a dose of certainty about Brexit – which finally happened, are winning over fears about future EU-UK relations.”

“Sterling is battling 1.3050, which is the confluence of a support line from early January, and the 50 and 100 Simple Moving Averages on the four-hour chart.”

“Resistance beyond 1.3070 awaits at 1.3110, a resistance line from late January. Support is at 1.3010, the daily low.”