UK Services Is the Last Big One for GBP - Forex News by FX Leaders

UK Services Is the Last Big One for GBP

Posted Wednesday, October 4, 2017 by
Skerdian Meta • 1 min read

Today we have the UK services report in schedule to be released shortly. It will be a big event for GBP given the importance of this sector in the UK economy and the fact that the UK economy is not in the best place at the moment.  

Yesterday, the construction sector report showed that this sector of the British economy is shrinking. Construction has been one of the best performing sectors during the past decade, but yesterday the numbers showed that it is contracting.

Now, the services report is to be released and it is expected to remain around the same level as last time at 53.2 PMI points.

The 200 SMA (purple) is the line in the sand for GBP/USD

GBP/USD slid lower yesterday but the USD weakness later in the day minimized the losses for GBP. That won’t be the case if the services sector contracts today. I don’t think it will but if the number is negative I expect GBP/USD to resume the recent downtrend again.

The 200 SMA is holding the price at the moment, but if the services disappoint, then this moving average will likely let go. In that case, I would sell GBP/USD at spot with a stop above 1.3270-80.  

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of