GBP/USD REMAINS NEAR 1.2000 AFTER US DATA, VIRTUALLY FLAT FOR THE WEEK

US Dollar rises marginally after US ISM Service PMI.

GBP/USD drops to 1.1960 and rebounds toward 1.2000.

Pair remains sideways around the 20-week SMA.

The GBP/USD fell to 1.1960 after the release of the US ISM Service PMI and then rebounded. The pair continues to move sideways, near 1.2000, virtually flat for the week.

US data lifts Dollar marginally

The last first-tier release of the week was the US ISM Service PMI for February which came at 55.1, below January's 55.2, and slightly above the market consensus of 54.5. The Prices Paid Index sub-component dropped from 67.8 to 65.6, still above expectations for a slide to 64.5. The Employment Index jumped to 54, versus expectations of a decline to 49.8.

The numbers gave the US Dollar some momentum, but price action remain subdued on Friday with major pairs consolidating. The greenback is moving with a positive intraday bias supported by a rebound in US yields. The US 10-year yield rose from 3.97% to 4.02%.

The GBP/USD is off highs as it keeps moving in a range above 1.1900. It is trading marginally higher for the week, hovering around the 20-week Simple Moving Average. A firm break under 1.1900 should open the doors to more losses.

While on the upside, the immediate resistance emerges at 1.2055 (20-day SMA) followed by the 1.2150 area. A firm break above should clear the way for 1.2200 and more.