FxWirePro: GBP/USD rebounds as political nerves ease, UK services PMI surprises to upside

• GBP/USD regained ground on Thursday as markets stabilized after a wave of selling driven by growing fiscal anxieties and political uncertainty surrounding Finance Minister Rachel Reeves.

•The rebound comes as markets seek clarity on the UK’s fiscal path and political stability following the government's welfare policy reversal.

•Data from the S&P UK services PMI showed that the British services sector activity expanded at the fastest rate in almost a year, while the prices charged rose at the slowest pace in nearly four years.

•The Bank of England is closely assessing service sector prices to gauge inflation pressure. Investors widely expect a rate cut in August.

•Across the Atlantic, US Nonfarm Payrolls   rose by 147,000, up slightly from 144,000 in May, according to the Labor Department on Thursday. The figure beat expectations  of 110,000 job.

•   Immediate resistance is located at 1.3788(23.6%fib), any close above will push the pair towards 1.3842(Higher BB)

•  Strong support is seen at 1.3582(SMA 20) and break below could take the pair towards 1.3542(38.2%fib).

  Recommendation: Good to buy around 1.3650 with stop loss of 1.3450and target price of 1.3780