FxWirePro: GBP/USD retreats slightly after UK business activity data

• GBP/USD initially gained but gave up some ground  on Tuesday  after a survey showed British business activity slowed in early September.

• S&P Global’s flash UK Composite PMI, which tracks activity in both services and manufacturing, dropped to 51.0 in September from 53.5 in August, hovering just above the 50.0 threshold that separates expansion from contraction.

• S&P’s flash September data showed the UK services PMI slipping to a two-month low of 51.9 from August’s 54.2, while the manufacturing PMI dropped to 46.2 from 47.0, its weakest reading since April.

•The disappointing data strengthens the case for dovish members of the Bank of England who argue that a rate cut could be needed in Q4 to support growth.

•Meanwhile, Markets are  awaiting comments from Fed Chair Jerome Powell, scheduled for 1635 GMT, which could shape expectations for U.S. monetary policy..

. • At GMT 12:20, the pound was up  0.01% to 1.3515 against the dollar.

•   Immediate resistance is located at 1.3516(SMA 20), any close above will push the pair towards 1.3567(38.2%fib)

•  Strong support is seen at 1.3415(50%fib) and break below could take the pair towards 1.3401(Lower BB).

  Recommendation: Good to buy around 1.3500with stop loss of 1.3420 and target price of 1.3570