The pair GBP / USD on the absence of important news from the UK continues to move up due to a weak dollar. The most important report from the United Kingdom this week was published today, this is the PMI data for the manufacturing sector, which turned out to be worse than the forecast, 55.3 versus 56.5 and probably will put pressure on the currency pair today, especially against the background of the expected more strong PMI for the US manufacturing sector.
Against this background, investors today may recall the information that was published yesterday by Reuters, that the EU leadership did not agree with the proposal to extend the work of banks on the same terms after Brexit. The British side hoped that they would be able to create a kind of free trade zone for financial services, which would preserve London’s status as one of the world’s main financial centers. But so far no official comments have been received on this score, so it is likely that the parties will still be able to agree. In any case, these messages once again confirm the assumption that the second stage of negotiations will be rather difficult.
Nevertheless, the technical picture so far looks optimistic enough for the pair GBP / USD. The price is steadily rising in the direction of the resistance area 1.4290-1.4343 causing a reversal of technical indicators that are again directed upwards. But for the time being it is very difficult to say whether it will be possible for buyers to push through the strong resistance area voiced above. Considering not the best statistics published today, most likely the assault on this area is being debugged at least for tomorrow.
Review prepared by Fort Financial Services analytical department. Follow our publications!