GBP/USD: Bulls fight bears for 1.3600 handle after the US data

• GBP/USD is trying to find a direction at around 1.3600 level. 
• The US ISM non-manufacturing PMI is slated at 14:00 GMT this Thursday.
• The 800 pips-strong slide in GBP/USD in last two weeks is leaving the markets taking a pause ahead of Friday's non-farm payroll.

The GBP/USD is trading at around 1.3585 up 0.10% on Thursday as bulls and bears are in a tug of war fighting for the 1.3600 handle level. The pair is in a bear trend, however, USD bulls seem to run out steam as the oversold condition on cable can induce traders to play a correction up. The disappointing UK Services PMI in the UK earlier did not lead to a massive GBP/USD selloff and the better-than-expected US trade balance and the initial jobless claims actually triggered a small USD dip. The fate of the GBP/USD seems to lie in the US Non-Farm Payroll this Friday.

Freshly released, the US trade balance came in at minus $49.0 Billion versus $50.0 billion forecast in March while the US initial jobless claims, in the week ending April 27, came in better-than-expected at 211K against 225K expected by analysts.

Coming up next in the North American session, the US ISM non-manufacturing PMI (Purchasing Managers Index) is expected to fall to 58.1 in April. The data is slated for 14:00 GMT. Friday will see the widely awaited Non-Farm Payroll data in the US and high volatility is expected across markets.

Earlier in Europe, the UK Services PMI (Purchasing Managers Index) rose to 52.8 in April from the strong slowdown seen in March. However, the data came below expectations as analysts were expecting 53.5 leaving little hope for a Bank of England rate hike in May. 

Looking back, on Wednesday, the FOMC (Federal Open Market Committee) statement revealed that inflation in the United States is on track. The Fed said: “inflation on a 12-month basis is expected to run near the Committee's symmetric 2% objective over the medium term.” Back in March, the FOMC expected the inflation to "move up in coming months." The FOMC has now a more accurate time horizon compared to a more open-ended statement last month.

Meanwhile, the US Dollar Index (DXY) which measures the greenback relative to a basket of currencies is currently unable to break the highs made on Wednesday at 92.83 and is trading in the 92.40 region down on the day.

GBP/USD 4-hour chart 

The trend is bearish and support is seen at 1.3551 swing low and at 1.3500 figure while resistance is seen at 1.3667 swing high and at 1.3712 swing low.