GBP/USD spiked above 1.3800 on upbeat PMI

• UK’s Services PMI came in stronger than expected at 54.5 in February.
• Cable moved up to session tops above the 1.38 handle on data.
• The Sterling stays vigilant on Brexit headlines, BoE-speak this week.

The British Pound gathered some buying interest in the wake of PMI figures today and is now lifting GBP/USD to fresh tops above 1.38 the figure.

GBP/USD upside remains limited by Brexit woes

Cable clinched fresh tops in the 1.3820 area after UK’s Services PMI improved above initial estimates to 54.5 during February (vs. 53.3 expected and up from January’s 53.0), although sellers have quickly stepped in and kept the bull run capped for the time being.

In the meantime, GBP remains under pressure against the backdrop of increasing uncertainty around the Brexit negotiations and PM May’s government. It is worth mentioning that May’s speech last Friday failed to shed more light on the ongoing talks regarding the conciliatory tone.

Further news around the Sterling noted the speculative community added to their net long positions to fresh 2-week tops in the week to February 27 in light of the latest CFTC report.

In the data space, UK’s housing sector data is due on Tuesday seconded by the publication of the Annual Budget (Wednesday) and manufacturing/industrial production and trade balance figures expected on Friday.

GBP/USD levels to consider

As of writing, the pair is up 0.13% at 1.3818 and a breakout of 1.3887 (10-day sma) would aim for 1.3918 (21-day sma) and then 1.4071 (high Feb.26). On the other hand, the immediate support emerges at 1.3712 (low Mar.1) followed by 1.3658 (high Sep.20 2017) and finally 1.3457 (2018 low Jan.11).