Forexpros – The pound trimmed losses against the U.S. dollar on Wednesday, retreating from the daily low after a report showing that growth in the U.K. service sector unexpectedly rebounded in September.
GBP/USD pulled back from 1.5412, the daily low, to hit 1.5456 during early European trade, still down 0.19% on the day.
Cable was likely to find support at 1.5339, Tuesday’s low and an almost one-year low and resistance at 1.5585, Monday’s high.
The Markit/CIPS services purchasing managers’ index rose to 52.9 in September from 51.1 in August, rebounding after its biggest one-month fall in 10 years and confounding expectations for a decline to 50.5.
The report came after data on Monday showed that manufacturing activity in the U.K. rebounded from a 26-month low in September and dampened expectations that the Bank of England may launch fresh easing measures to shore up growth.
A separate report by the Office of National Statistics showed that U.K. second quarter growth was unexpectedly revised down to 0.1%. Analysts had expected second quarter gross domestic product to remain unchanged at 0.2%.
The ONS said the revision was not based on any new data but was due in large part to new methods.
Meanwhile, the pound was fractionally higher against the euro, with EUR/GBP dipping 0.03% to hit 0.8616.
Later in the day, the U.S. was to release a report on ADP non-farm payrolls, while the ISM was to produce a report on service sector activity.
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