For three consecutive trading sessions, the GBP/USD pair is trying to correct higher, but its gains did not exceed the 1.3211 resistance, before settling back down around the 1.3100 support at the time of writing. The recent US dollar gains brought down the pair to the 1.3053 support, and the 1.3000 psychological support remains the target for the bears, as investors took advantage of the US dollar as a safe haven after the recent tensions in the Gulf region, after the United States launched an air strike targeting Qasim Soleimani, a prominent military commander accused by the United States of being the mastermind For many operations against American interests in the region. Markets are on alert for Iran's retaliatory response.
On the economic level. The most prominent announcement was the ISM Purchasing Managers Index for US services, which rose to a reading of 55.0 and expectations were for a reading of 54.5 from a reading of 53.9 previously. The US service sector remains strong and has not been affected much by the long trade war between the United States of America and China.
According to the details of the survey results, many respondents said that trade and other uncertainties had affected their business, but fewer of those concerns were expressed in previous months. This may reflect the fact that the United States and China reached a preliminary trade agreement on December 13, and are scheduled to sign on January 15. Most analysts expect growth to remain robust in the last three months of the year, with the economy growing at an annual rate of approximately 2.5%. This was above 2.1% in the quarter from July to September.
According to the technical analysis of the pair: GBP/USD price is trying hard to move away from the 1.3000 psychological support, which confirms the strength of the downtrend again. Bulls look to the 1.3300 resistance level to confirm control of the pair's performance. As we expected before and we confirm now, the performance of the pair will remain fluctuating throughout the transactions in 2020. After Brexit on January 31, 2020, there will be a marathon between the two sides of Brexit in the transitional period to determine the relations between them.
There are no significant UK economic releases today. From the US, the focus will be on the ADP survey of the change in NFP numbers.
