Sterling Falls Noticeably Ahead of Final Services PMI Data, 25+ PIP Movement Likely; Feb 03, 2021

U.K. Final Services PMI

U.K. is going to release Final Services PMI data around 0930 GMT/1500 IST. It’s a leading indicator of economic health – businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy. This data is derived via a survey of about 650 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries and inventories.

Let’s see how GBP has reacted during the previous data release:

Jan 06:

Dec 03:

Technical View:

GBP/USD: The Sterling weakens sharply ahead of U.K.’s Final Services PMI data. The pair made intraday high at $1.3683 and low at $1.3645 mark. Both RSI and triple EMA confirms downside trend on H1 chart. While on a Day Chart, triple EMA still signals the bullish trend. The key boundaries for the parity will be $1.3682 and $1.3648 mark. A sustained close of either side will get further directions to the parity.

Key Resistances: $1.3682, $1.3740, $1.3762, $1.3802

Key Supports: $1.3648, $1.3622, $1.3600, $1.3552

Take a look and do trade wisely!
Good Luck