* GBP/USD was sold initially vs the USD to 1.4147, a 4-month low, before rallying impressively to 1.4215. A U.S. investment bank was rumored buying, while the data came despite a slump below 50.0 in the UK March CIPS report. The CIPS came in at 49.7, below the 52.1 in Feb and forecasts of 51.3, making the weakest number in two years. This is seen almost sealing a 25 bp UK rate cut this Thursday. Like the USD, some have suggested it is the perception of higher growth from a rate cut that couldbe boosting cable.
The outlook is mixed.

Support: 1.4147 (overnight low; 4-month low), 1.3966 (Nov. 24 trough).
Resistance: 1.4220 (overnight high), 1.4402 (61.8% Fibonacci retracement level of Nov.-Jan. uptrend), 1.4398 (20-day moving average), 1.4534 (50% Fibonacci retracement level of the Nov.-Jan. rally), 1.4542 (100-day moving average), 1.4537 (60-day moving average). For additional levels see story .876.