Forex: GBP/USD tests 1.5700 support after US data

The GBP/USD has been trading under pressure today, and after the spike high to 1.5804 on better than expected UK PMI Services data, the market became weak again, heading back to the 1.5700 support, where it has been holding the downside since January 28.

The pair has been testing the handle since the US opening and now, after the release of US data, the pair reached as low as 1.5691. The pair trades at 1.5700, as of writing.

Non-manufacturing PMI surprised the market with a rise from 56.5 to 57.3 in January, beating the consensus of a drop to 55.8.

From 46.5, economic optimism in the US rose to 47.3 in January, according to IBD/TIPP, beating consensus of 46.1.
"The intraday bias here is positive, for a rise towards 1.5850-60 area before another downswing for a test of 1.5673 low", wrote Deltastock.com analyst Stoyan Mihaylov.