17.04.201215:43 Forex Analysis & Reviews: Technical analysis and trading recommendations on GBP/USD for February 05, 2015

The cable closed with marginal gains at yesterday's session. The UK services PMI surged in January. The UK service sector started 2015 with a strong note. The index rose to 57.2 in January from a 17-month low in December which stands at 55.8. But on the other hand, the US dollar gained ground affected by the strong US economic data. Private sector employment increased by 213,000 jobs from December to January. The cable managed to breach above the descending trend line on the daily chart on an intraday basis, but was unable to close above it. Today, again the pair is facing resistance on the same descending trend line. The cable has a parallel resistance at 1.5270. Bulls can challenge, if the prices break above the trend line and close above it. We recommend fresh buying above 1.5270 with the targets at 1.5320 and 1.5400. On the down side, the pair has support at 1.5125, 20Dsma. The hourly support levels are set at 1.5165, 1.5150, and 1.5100. Risky trades can sell below 1.5165 with the targets at 1.5140, 1.5125, and 1.5100. The panic will be triggered below 1.5100. Today, the focus has shifted to the Bank of England monetary policy statement. We expect the BoE to hold its benchmark interest rate at 0.50%. On the US front, the unemployment data is the key driving factor of this pair. Ahead of BOE monetary policy statement, the cable is trading in a negative bias.