Forex - GBP/USD remains lower in risk-off trade

Forex News – The pound remained lower against the U.S. dollar on Wednesday, as better-than-expected U.K. service sector data did little to soothe investor concerns that the Bank of England may be about to launch another round of monetary easing.

GBP/USD hit 1.5395 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.5415, shedding 0.42%.

Cable was likely to find support at 1.5339, Tuesday’s low and an almost one-year low and resistance at 1.5585, Monday’s high.

The pound trimmed losses earlier after a report showed that growth in the U.K. service sector unexpectedly increased in September.

But concerns over the fragile U.K. economy were highlighted after the Office of National Statistics said in a report that U.K. second quarter growth was unexpectedly revised down to 0.1%.

Analysts had expected second quarter gross domestic product to remain unchanged at 0.2%.

The ONS said the revision was not based on any new data but was due in large part to new methods.

Sentiment on the pound has been hit in recent weeks by speculation that the BoE may resume its asset purchasing program to bolster the flagging U.K. economy.

In the U.S., the Institute for Supply Management said its services index dipped to 53.0 last month from 53.3 in August but employment in the sector fell to its lowest level since April 2010.

The pound was fractionally lower against the euro, with EUR/GBP easing up 0.06% to hit 0.8625.

Also Wednesday, payroll processing firm ADP said U.S. private sector employment increased by a seasonally adjusted 91K in September, beating expectations for an increase of 70K.