UK Services Had an Olympic August – GBP/USD Capped by
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UK Services Had an Olympic August – GBP/USD Capped by

The British services sector grew very nicely according to Markit’s Services PMI. The index hit 53.7 points, the highest since March and above expectations of 51.3 points. July’s figure was 51.

GBP/USD made yet another move on 1.5910, but failed to break this level. This is a very tight cap below the round 1.60 level.

GBP USD Capped By Resistance Olympic Services PMI August
GBP USD Capped By Resistance – Click image to enlarge

Due to an error, the data was released much earlier than scheduled – around 16 hours ahead of time. Among the three PMIs, services was the only one that posted growth (more than 50 points). Construction disappointed with a drop to contraction (49 points).

Manufacturing exceeded expectations, but still remained on negative ground. It’s important to remember that services is the largest sector. Could Britain’s recession be close to an end?

On the other hand, the figure were for the month of August, when most of London’s Olympic Games were held, and when the Paralympics began.

GBP/USD leaped to 1.5909 upon the surprising publication, but couldn’t run through this line, that was also seen earlier in the day. Support is found at around 1.5850.

For more on cable, see the GBP/USD forecast.

No change is expected at Thursday’s rate decision.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.