GBP/USD gives away gains near 1.4120 post-PMI

• Services PMI dropped to 53.0 in January.
• Cable soggy amidst Brexit and USD-buying.
• BoE meeting (Thursday) next of relevance in UK docket.

The Sterling is clinging to its early gains on Monday, with GBP/USD managing to gyrate around the 1.4120/30 band for the time being.

GBP/USD supported near 1.4080

After bottoming out in the 1.4080 region earlier in the Asian session, Cable seemed to have found dip-buyers along with a loss of upside momentum around the greenback.

In the meantime, GBP/USD is looking to consolidate in the lower end of the recent range following Friday’s drop in the wake of the solid results from the US labour market for the month of January.

In the UK data space, all the attention will be on the BoE meeting on Thursday, where consensus expects the ‘Old Lady’ to keep the refi rate unchanged at 0.50%. In view of analysts at Rabobank: “we are watchful for signs that the Bank could be minded to squeeze in two moves during the course of 2018, potentially to coincide with the May and November Inflation Reports. We expect a mildly hawkish tone from the February 8 policy meeting”.

GBP/USD levels to consider

As of writing, the pair is gaining 0.09% at 1.4126 facing the next hurdle at 1.4150 (high Feb.5) followed by 1.4345 (2018 high Jan.25) and finally 1.4375 (200-week sma). On the downside, a breach of 1.4083 (low Feb.5) would aim for 1.3979 (low Jan.30) and then 1.3929 (21-day sma).