GBP/USD lost momentum on Tuesday, churning territory near the 1.3500 handle.
US data helped bolster investor sentiment after job openings came in higher than expected.
Key US ISM Services PMI figures from April are slated for Wednesday.
GBP/USD trimmed bullish momentum on Tuesday, settling into slim chart churn just north of 1.3500. The Bank of England’s (BoE) latest Monetary Policy Report hearings before British parliament did little to galvanize Cable traders, and market sentiment is pinned in the middle as traders hope for a cooling of US-China trade tensions.
Investors continue to bank on an eventual trade deal between President Trump and China’s Xi Jinping, despite still-escalating trade tensions as the two sides lob accusations of violating preliminary trade agreement terms. Trump administration staff continue to insist that Trump and Xi will be speaking directly soon, but specific details remain limited.
JOLTS Job Openings rose to 7.391M in April, flouting the forecast backslide to 7.1M. On the other side of the data coin, US Factory Orders contracted more than expected in April, falling 3.7% MoM, their lowest figure in 15 months. The previous month also saw a sharp downward revision, slipping to 3.4% from the initial print of 4.3%.
US ISM Services Purchasing Managers Index (PMI) survey results are due on Thursday, and investors are hoping for a slight recovery in aggregate business operator sentiment. May’s ISM Services PMI print is forecast to rise to 52.0 from April’s 51.6.
GBP/USD price forecast
GBP/USD found intraday technical support from the 1.3500 handle, helping to keep bids bolstered through a middling market session. Cable bulls are beginning to show signs of strain from keeping price action elevated, but the short side is looking equally weak as the pair runs well ahead of key long-term moving averages.
GBP/USD daily chart
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