Sterling bulls were hesitant to enter the scene on Friday morning, despite reports Britain’s service sector is growing at its fastest rate in six months.
Although UK Services PMI jumped 55.6 in October, up from 53.6 in September, the fairly muted reaction suggests that investors may be redirecting energy and attention elsewhere. Thursday’s dovish rate hike, has not only encouraged sellers to pummel Sterling, but has also heavily bruised buying sentiment towards the currency. With the bias towards the Pound currently tilted to the downside, any appreciation could be viewed as a technical bounce and an opportunity for bears to begin fresh rounds of selling. Taking a look at the technical picture, Sterling is under intense selling pressure on the daily charts. Sustained weakness below 1.3050 may open a path towards 1.3000 and 1.2970, respectively.
