GBP/USD Forecast: The Pair Tests For 1.40000 Again
Solid economic data and positive and effective vaccination certainly help the GBP, pushing the GBP/USD pair again closer to 1.40000. We are now waiting for moving averages MA20 and MA50. This can be a potential resistance near 1.42000. as far as it turns out, we go back down to the support zone to try again. Additionally, below is the MA200 on the daily time frame. That can be an excellent support for further growth on the chart.
The private sector in Great Britain recorded one of the fastest recorded expansions in June. This was because production in the production and service sector increased. Meanwhile, the economy continued to reopen after the blockade of COVID-19, the monitored research showed on Wednesday.
The composite output flash index fell to 61.7 in June from 62.9 in May, data collected by IHS Markit and the Chartered Institute of Procurement & Supply showed. The result was forecast to fall slightly to 62.8.
A Decline in Complex PMI
The decline in complex PMI suggests that the pace of recovery may have peaked. This concern was shared by Kieran Tompkins, an economist at Capital Economics. Despite a four-week delay with the final easing of restrictions, monthly GDP will return to the level of February 2020 in August.
The index of service procurement managers unexpectedly fell to 61.7 in June from 62.9 a month ago. Economists predicted that the index would rise to 63.0. But the index indicated a strong expansion of service sector activity in line with weaker COVID-19 restrictions and growing customer demand.
Production PMI reached 64.2 in June, compared to 65.6 in the previous month. The expected reading was 64.0. However, this was the second-highest assessment since the beginning of the research in January 1992.
Last week, an analysis of the public health of England showed that the vaccines produced by Pfizer and AstraZeneca provide high protection for more than 90% of the Delta variant of the coronavirus.
“We are encouraged to see non-clinical results published from Oxford. These data, together with a recent analysis of England’s health, provide us with a positive indication that our vaccine may have a significant impact on the Delta variant,” said AstraZeneca CEO Mene Pangalos.
