The last purchasing managers’ index for the UK is the the most important one: for the services sector. And it disappointed with a slide from 60 to 58.8 points. While this figure still represents strong growth, it fell below expectations of a rise to 60.4.
The miss in the data was not the reason for cable’s fall, but it certainly keeps it depressed after losing ground earlier.
As the chart shows, the pair is nearing uptrend support: a line which began in August and was touched in November. Uptrend support coincides with the 1.6260 line which worked as a double top back in September and October:
Further long term support appears at the clear separator of 1.5850. Resistance awaits at 1.6440, which was a double top on the way up. For more lines, events and analysis, see the British pound forecast.
At the wake of 2014, the dollar and the yen reversed their losses and began shooting higher. The main victims were the euro and the pound. After reaching 1.66, cable dropped to the low 1.64s in the New Year’s week, which saw thin volume.
This week, those who were on vacation are already back, and the pound is beaten once again. GBP/USD lost the 1.64 handle and dropped as low as 1.6336 before stabilizing.
Share
