UK’s service sector grew at its fastest rate in the last 6 months. How did the strong UK Services PMI affects GBPUSD? Was the data able to ignite GBP bulls?
3 November, HotForex – The latest reading on the UK services sector came in above forecast, UK PMI was 55.6 against the forecast of 53.3. Despite the strong UK Services PMI the impact on GBPUSD was little.
BoE Dovish outlook
The Dovish outlook from the BoE and the confirmation of Jermoe Powell as the next “safe pair of hands’ to run the FOMC combined to help the GBPUSD close below the recent October low and this morning it has dropped below 1.3043 down 0.15 percent so far today. The next support on the DAILY chart is the psychological 1.3000, the summer low at 1.2910 and the 200 day moving average at 1.2850. The resistance at 1.3300 now seems rather distant.
How strong UK Services PMI affects GBPUSD?
The H1 chart is struggling with the resistance at 1.3065 and 1.3077 even with a significantly over sold RSI, a weak PMI number and the pound is likely to come under more pressure and those Daily lows will look even closer.
The strong UK Services PMI affects GBPUSD positively, but not much. Next, 1.3095 would be required before today’s NFP data dictates the rest of the direction today. According to Stuart Cowell, senior analyst at HotForex, cable will consolidate further. Watch his GBPUSD video analysis for more insights.
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