Morning outlook - GBP/USD gains 0.8%
- Shortly after a release of information on the UK Services PMI the Pound got a strong upside momentum and in the upcoming seven hours advanced by 0.8% against the Greenback. Most probably, the surge was based not only on this fundamental event but also on a combined effect from the 200-hour SMA and the lower support line of a rising wedge.
- But contrary to patterns theory, the currency pair managed break through the upper edge of an ascending channel that was additionally protected by the weekly R1 at 1.3015. After such extensive surges the exchange rate usually enters into a calm horizontal movement for some time and then the counter currency tries to restore some lost positions.
- Most likely today the buck will try to do the same, using an effect from release of the US ISM Non-Manufacturing.
