The GBP/USD is wavering ahead of the UK services PMI numbers and annual budget reading. The GBP to USD pair is trading at 1.3953, where it has been in the past few hours.
GBP/USD news: The biggest focus among sterling traders will be the UK budget by Rishi Sunak. In it, analysts will be looking at the government’s response to the pandemic and what the key priorities will be. Also, they will be looking at potential business rate cuts or whether there will be any tax hikes.
The GBP/USD will also react to the latest services PMI data by Markit. After the strong manufacturing PMIs released on Monday, analysts will be paying close attention to the services PMI. They expect the data to show that the PMI increased from 39.5 in January to 49.7 in February.
Why this matters: The budget reading is important because it will provide a picture of what we should expect going forward. Also, it will show the top government’s priorities. Meanwhile, the services PMI is important because the sector employs most people in the country.
The GBP/USD is trading at 1.3953, which is slightly below yesterday’s high of 1.3976. On the four-hour chart, the price is along the 38.2% Fibonacci retracement level. It is also along the 25-period and 15-period moving averages. The pair also seems to be forming a bearish flag pattern. Therefore, there is a possibility that the price will break-out lower today. If this happens, the key level to watch will be 1.3860.
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GBPUSD technical chart