GBP/USD will be on the move with U.K. composite and service sector PMI numbers scheduled for release on Thursday. So far we know that manufacturing activity remained stable but construction activity contracted in the month of March. Higher highs and higher lows over the past 4 trading days suggests that GBP/USD wants to rally but strong data will be needed to drive the currency pair upwards. The Bank of England is widely expected to be the next major central bank to raise interest rates but investors are looking for data to validate their hawkishness before buying the currency.

Technically, GBP/USD has strong support at 1.40. Not only is this a significant round number, but its also where the 20 and 50-day SMAs converge. If GBP/USD breaks above 1.41 on the back of stronger data, the next stop could be 1.42.