When is the UK services PMI and how could it affect GBP/USD?

The UK services PMI overview

The UK economy will release its March services PMI later in the European session at 0830GMT, which is expected to come in at 50.9 versus 51.3 booked in February. 

Deviation impact on GBP/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 10 and 50 pips in deviations up to 2.5 to -2, although in some cases, if notable enough, a deviation can fuel movements of up to 70 pips.

How could affect GBP/USD?

Haresh Menghani, Analyst at FXStreet explains: “From a technical perspective, the 1.30 handle now seems to have emerged as immediate strong support and is followed by the very important 200-day SMA, around the 1.2980 region. A sustained break below the mentioned support levels will add credence to the recent break below a short-term ascending trend-line support, forming a part of a bearish rising wedge chart pattern, and accelerate the downward momentum further towards testing the 1.2900 round figure mark.”

“On the upside, a follow-through up-move might now confront some immediate resistance near the ascending trend-line support break-point, around the 1.3180 region, which is closely followed by the 1.3200 round figure mark, above which the pair seems to extend the positive momentum further towards challenging the 1.3260-65 supply zone,” Haresh adds.

Key Notes

UK Services PMI Preview: A temporary distraction from Brexit for GBP/USD, but probably no relief

GBP/USD technical levels show it may rise further after May reached out to Corbyn — Confluence Detector

UK's Letwin: Process in parliament of seeking a delay to Brexit will continue as planned

About the UK services PMI

The PMI service released by both the Chartered Institute of Purchasing & Supply and the Markit Economics is an indicator of the economic situation in the UK services sector. It captures an overview of the condition of sales and employment. It is worth noting that the UK service sector does not influence, either positively or negatively, the GDP as much as the Manufacturing PMI does. Traders want the highest possible reading as that will be taken as positive for the GBP. Any reading above 50 signals expansion, while a reading under 50 shows contraction.