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GBPUSD : Trimming its Gains

GBPUSD on the 4 hour chart broke the channel trend today which it was following earlier. The major sell off came after weak UK services PMI data and Draghi’s comment on monetary policy for euro zone. Pound broke the support trend line of the channel after Markit reported that the non-manufacturing PMI rose to 53.1 missing the economist’s expectation for an increase to 53.5.GBP found its next support at 1.6596.

 As pound having correlation with EUR, ECB president Draghi saying that if inflation will not come back after Easter, ECB will consider further steps including unconventional measures to remove the risk of deflation in euro zone, broke GBP further down to find support at 1.6569. The pair should move back towards upward direction, although if it breaks this level also it might might find its next support level at 1.6545.