GBP/USD jumped up to a high of 1.3190 from 1.3170 levels
And price is now settling just under the highs at 1.3180-85, as buyers are looking to try and break back above the 200-hour MA (blue line). In doing so, they will break the near-term bearish bias established by sellers earlier today.
The services and composite PMI prints earlier were encouraging, but that's just about as good as it gets. The overall health of the UK economy remains rather benign and growth is still expected to be near standstill in Q1 2019. As mentioned in the report, Markit notes that Q1 growth in the UK is expected to come in around +0.1% q/q. That isn't something that is too encouraging.
For cable, just look out for the technical levels above. The report may provide some relief for buyers in the sense that Brexit uncertainty isn't eating at the UK economy at a major pace and that there are still some bright spots. Hence, a move back above the 200-hour MA could see a return towards the 1.3200 handle before we see the a test of resistance around 1.3214 and the 100-hour MA (red line) @ 1.3247.
I don't expect the report here to change sentiment surrounding the economy but it could just give buyers something to chew on as we await on further developments on Brexit. That will still remain the key agenda in the week ahead as there is the meaningful vote set to take place in parliament before 12 March.
