UK services PMI: What to expect of GBP/USD

November 4, 2015

The GBP/USD pair is trading above on a positive note ahead of the UK services PMI on account of the selling in the EUR/GBP cross. 

Services PMI could spike

As per past patterns, a sharp rise in the manufacturing PMI is followed by an uptick in the services PMI figure. The manufacturing PMI released on Monday beat expectations by a wide margin and printed at 16-month high. Thus, it will not be a surprise if the service activity expands at a much faster rate than the expected rise to 54.5 in October from September’s 53.3. 

Apart from the headline figure, the markets would also look out for an uptick in the service sector employment and service charges (output price inflation). An uptick in both could push Sterling higher. 

GBP/USD Technical Levels

At 1.5427, the immediate resistance is seen at 1.5463 (50% of 1.5819-1.5107) and the support is seen at 1.5379 (38.2% of 1.5819-1.5107). A higher than expected services PMI could trigger a break above 1.5463 and push the pair higher to its major resistance at 1.55. Further gains could be seen only in case of a big jump in services PMI. On the other hand, the pair could fall below 1.5379 and extend the drop to 1.5355 in case the PMI prints below the consensus estimate. 

Publication source
OctaFX information  OctaFX reviews

October 26, 2016
Sterling reversal
What we saw in sterling yesterday was instructive of the dilemma that may face other central bankers before long. Carney played down expectations of a further easing in policy before the end of the year, as was strongly suggested in August when they eased policy in the wake of the Brexit referendum...
October 24, 2016
Important economic events for the coming week
Monday, October 24, 2016 - JPY Small Business Confidence (OCT), EUR Markit/BME Germany Manufacturing PMI (OCT P), USD Markit US Manufacturing PMI (OCT P)...
October 21, 2016
US Presidential Election: Final Debate Aftermath
With the dust having settled after Wednesday final US presidential debate of the 2016 campaign between Donald Trump and Hillary Clinton, the results have become rather apparent...

Tickmill Rating
Larson&Holz IT Ltd Rating
FIBO Group Rating
HYCM Rating
OctaFX Rating
Vantage FX Rating

Binary Brokerz Rating
IQ Option Rating
Grand Option Rating
Anyoption Rating
365BinaryOption Rating
TropicalTrade Rating