GBP/USD Lifted by the UK Services PMI Expansion


GBP/USD Analysis

The UK services sector expanded for the first time in around half a year according to today's data, as the February preliminary services PMI came in at 53.3. This raises chances for further tightening by the Bank of England, which had softened its language earlier in the month. However, communication is vague and divisions amongst policymakers create an uncertain environment.

GBP/USD jumped after the PMI beat and reclaims 1.2100, which brings 1.2271 in the spotlight. However, it will likely need fresh new catalyst for taking it out and we are cautious around further advance towards 1.2447-53.

The pair's trajectory will rely on incoming data from the United States over the coming days and Wednesday's accounts of the Fed's last policy meeting. The blockbuster jobs report at the start of the month heightened expectations around the bank's policy path, which were solidified by last week's higher than expected inflation figures and hawkish comments by officials.

CME's FedWatch Tool now assigns the highest probability to rates peaking at 5.5%, suggesting another 75 basis points worth of hikes [1]. The repricing supports the greenback and GBP/USD is in risk of renewed pressure towards 1.1840, but further weakness that would challenge 1.1652 has a higher degree of difficulty.

Why Trade with FXCM

Commission free with fast, efficient execution.

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.



Retrieved 21 Jun 2024

${} / ${getInstrumentData.ticker} /

Exchange: ${}

${} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.