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by ForexNewsNow Team on July 6, 2010

GBP/USD pares gains as ISM data dampens risk appetite

forex trading currency trading online forex GBPNEW YORK (Forex News Now) – The pound pared earlier gains versus the dollar on Tuesday, after weak data on the U.S. services sector GBP/USD chipped away at an earlier upswing in FX traders’ risk appetite.

In U.S. afternoon currency trading, GBP/USD traded at 1.515, up 0.1 percent on the day, after retreating from 1.5227, a 2-day high and close to a 2-month high.

The Institute for Supply Management, an industry group, said earlier in the day that its non-manufacturing index, which tracks service-oriented firms, dropped to 53.8 in June from 55.4 in May.

Global forex analysts had expected a reading of 50, according to two major forex news outlets.

According to forex analysis, GBP/USD is likely to touch immediate support around the daily low, 1.5081, and encounter resistance around the high of May 3, 1.5316.

The ISM data offset upbeat comments by the Bank of France chief, Christian Noyer, who said French banks were likely to pass Europe-wide stress tests, and an industry report which showed that U.K. registrations of new cars rose 10.8% in June, in a 12th consecutive monthly increase.

Meanwhile, sterling slid versus the yen: GBP/JPY traded at 132.47, down 0.28 percent on the day.

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