In a cautious Fed, GBPUSD breaks through resistance as traders price


Following solid manufacturing and service PMIs, the GBP/USD pair rose above a main resistance level.
The services PMI rose to 49.9, according to Markit, while the manufacturing PMI rose to 57.3.
Traders are also focused on the upcoming Fed rate decision.

The GBP/USD pair moved above a key resistance level as traders digested the mixed economic data from the UK ahead of the Fed decision. The pair is trading at 1.3530, the highest since May 2018.

The British pound has recovered
British economic activity picks up

The GBP/USD rose after relatively strong economic data from the UK. In a report, Markit said the services PMI rose to 47.3 in December from 41.7 in November as the government allowed some businesses to reopen. This increase was relatively higher than the median estimate of 41.9.

Nevertheless, the services sector is coming under pressure as the PMI is below 50. This is mainly because many areas of the industry have not yet recovered. For example, hotels, restaurants and


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