GBP/USD is expected to trade with a bullish outlook. The pair posted a strong rebound today after the data, and also managed to hold above its key horizontal support at 1.3330, which is expected to limit any downside room. The 50-period moving average is heading upward now, and should continue to push the prices higher. In which case, as long as 1.3330 is not broken, likely advance to 1.3395 and 1.3440 in extension.
Fundamental Overview: According to data release earlier today, activity in the U.K.'s dominant services sector picked up in May, adding to recent indications the economy is rebounding from a weak start to the year. The U.K. economy slowed sharply in the first quarter, prompting the Bank of England to forgo a flagged rise in its key interest rate at their May meeting. However, officials signaled that they still expect to tighten policy if that slowdown proves to be short-lived, as they believe it will.
Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which is a signal for long positions. If it remains below the pivot point, it will indicate short positions. The red lines show the support levels, while the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 1.3395, 1.3440, 1.3475
Support levels: 1.3295, 1.3275, 1.3235
The material has been provided by InstaForex Company - www.instaforex.com