Forex: GBP/USD back below 1.5900

FXstreet.com (Córdoba) - The Cable spiked higher during the American session as the dollar weakened after the US ISM manufacturing index printed its lowest in over 3 years and after the early release of the Markit UK services PMI, which rose more than expected to 53.7 from 51.0 in July.

GBPUSD quickly moved higher and matched its European session peak of 1.5907 before losing momentum and sliding back below the 1.5900 mark. At time of writing, GBPUSD is trading at the 1.5885/90 area, slightly above its opening price.

"Cable eases below 1.5900, following brief break higher that stalled on approach to pivotal barrier at 1.5911. As the hourly studies continue to point lower and 4h chart indicators move in a sideways mode, this may suggest that the latest upleg from 1.5753 is running out of steam", says Slobodan Drvenica, analyst at Windsor Brokers Ltd.

"Break below 1.5850 would be the first signal of weakness, with loss of trendline support at 1.5820 and round figure at 1.5800, expected to turn focus towards key near-term support and higher base at 1.5750 zone", he says. "Alternatively, lift above 1.5911 will bring bulls fully in play".