On July 4, 2013 we are calling for 1.5082/96 in the coming days. The UK June services PMI data turned out to be better than expected. So the British pound won back the correction vigorously. The Purchasing Managers’ index for services came in at 56.9 against the forecast of 54.6 and May’s reading of 54.9. The GBP has increased by 125 points.
Today at 15:00 GMT+4 the Bank of England is to announce its interest rate decision and asset purchases target. No changes are expected.
From the technical point of view, the price correction was slightly more than 23.6%yesterday from the movement for June 17–July 3; it reached the Krusenstern line (blue MA) on a 4h- chart and the trend line on a daily chart. However, having not consolidated above the Krusenstern line, it reversed downwards. It might be the finish of the correction. In the days ahead we expect the price near support at the trend lines, either brown or blue on a daily chart: 1.5082/96.