U.K. PMIs Boosted The Pound Sterling

However, a rise came with a delay. The British currency grew sharply only at the beginning of the Asian session. The US market was closed yesterday in honor of Independence Day. All in all, business activity indices fell less than expected. In particular, the UK services PMI dropped to 62.4 from 62.9 in May. The reading was forecast to slip to 61.7. Meanwhile, the composite PMI fell to 62.2 from a preliminary estimate of 61.7 and compared with May’s 62.9. Thus, the figures have been revised higher as a sharper drop was included into the preliminary estimates by market participants.

United Kingdom Composite PMI:

Similar reports will be published today in the United States. Based on the current forecast, the pound sterling should at least consolidate at the levels it has already achieved. There is a likelihood that the currency will extend gains. Anyway, the US services PMI is expected to drop to 64.8 from 70.4, while the composite index is projected to fall to 63.9 versus 68.7, preliminary estimates showed. Importantly, business activity data came out better than the flash results not only in the United Kingdom but also in the eurozone. If the same scenario plays out in the United States, the greenback will strengthen.

United States Composite PMI:

Yesterday, a corrective move of GBP/USD took place to the pivot point of 1.3730.

A market dynamic is 45 points, which is 50% lower than the average daily level. At the same time, an increase in speculation is observed, signaling a possibility of a bullish market.As for the current location of the quote, we can see buying interest at the very opening of the daily candlestick.We can assume that if the price consolidates above 1.3900, the pair is likely to fully recover relative to its downward trend last week.In terms of complex indicator analysis, we can see that technical indicators are giving a buy signal on the H1 and M1 charts owing to a corrective move in the market.

InstaForex Group

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