Both measures of services and manufacturing activity for the United Kingdom grew in February. IHS Markit’s flash data saw manufacturing activity rising to 51.9, beating estimates of a decline to 49.7.
Meanwhile, services activity fell slightly to 53.3 for the period. Activity in the business is picking up steam after there was some certainty to the Brexit stalemate.
GBP/USD to Continue its Consolidation
Cable is expected to continue its consolidation. Following the rally which put the sterling back to the 1.2960 handle, there is scope for prices to retreat. The lower price level near 1.2879 will be important in the short-term.
If support forms here, we expect GBPUSD to breakout to the upside from the descending wedge pattern currently in play.
