- GBP / USD Outlook indicates growing concerns about the economy in the UK.
- The UK service PMI was relieved of 52.8 to 51.2.
- Pouma strengthened after Trump announced a trade agreement with Japan.
The prospects of GBP / USD indicates increasing concern about the economy in the UK after the Prime Minister, which put the cover on POUTI. Business activity in the country increased only weak, increasing pressure on the English bank at lower lending costs. In the meantime, market participants continue to watch the trafficking reason that recently increased risk appetite.
–Are you interested in learning more about ETF brokers? See our detailed guide-
Data on Thursday, they discovered that the UK business activity was poorly growing. It is known that the PMI services were alleviated from 52.8 to 51.2. Meanwhile, economists expected the figure to hold on at 52.8. Data on weak business activities are monitored by other economic reports, which show a slow growth of salaries and contraction in the economy. Although the United Kingdom has already provided trade with the United States, the economy is fighting, which could force the Central Bank to implement more price reduction. Participants in the market prices 80% chance of the cut in August.
Meanwhile, the function recently gathered, together with other risky means, following Trump’s trade agreement announcement with Japan. The news was facilitated by concerns about the global trade war. At the same time, reports show that an agreement with the EU can be upcoming, which could further intensify the appetite.
GBP / USD Key events Today
- Unemployment Notices USA
- US FLASH MANUFACTURING PMI
- US Flash Services PMI
GBP / USD Technical Outlook: Sellers appear near 1,3600 resistance
On the technical side, the GBP / USD price retreated after it was approaching resilience levels at 1,3600. However, it still trades above the 30th, showing that the bulls are in lead. Meanwhile, RSI trades above 50 years old, supporting its swing.
–Are you interested in learning more about Canadian forex brokers? See our detailed guide-
Rally began recently when the previous drop was paused near the level of support from 1,3400. The bulls took the push of the price above the 30th and maintained steep rally. After such a sharp move, the price may need to stop and re-set the SMA before continuing.
The break above the key 1,6300 would strengthen bias for buffalo and enable GBP / USD to reach 1.3750 resistance. However, the bears form a strong candle at the top of the rally, which could transfer the feeling. Still, the bias of the bacara will remain intact until the price remains above the 30th.
Looking for forex trading now? Invest in Ethorro!
68% Retail order Loss of money lose money when trading CFDs with this provider. You should consider whether you can afford to take a high risk of losing money.
