The US dollar strengthened against the British pound after a positive jobless claims report reduced worries that the world’s largest economy is experiencing a broad slowdown.
The data released from the UK was cheerful on Wednesday Markit Services (PMI) displayed a reading of 59.5 it was the highest level since August and up from 58.9 in March. However, the UK Parliamentary Election is showing, by most polls, that another coalition government is a highly probable outcome of the election.
Today on the economic agenda we have from the UK the total trade balance in March that is expected to fall from £-2.859 to £-2.400. On the US side we will have the nonfarm payrolls in April that is estimated to rise from 126K to 230K and the unemployment rate is expected also to fall from 5.5% to 5.4% showing a strong US Labour market.
On yesterday session the GBPUSD initially fell but found enough buying pressure at Wednesday open to turn around and closed near the high of the day, shy of the 200-day moving average. The pair is in a potential phase change from recovery to accumulation, trading above the 10 and the 50-day moving average.
Expecting upward move to a daily resistance at 1.5853 on a break above the daily resistance at 1.5583 (scenario 1) or a bounce from the daily resistance at 1.5485 could pull the pair back down to a daily support at 1.5237 (scenario 2).