GBP/USD rises further on better-than-expected UK PMI data

On Jul 3, 2024

GBP/USD advances for the second consecutive day, bolstered by better-than-expected UK services PMI (the dominant sector of the economy) released earlier today.

Fresh bulls have cracked the psychological 1.2700 barrier and the nearby pivotal Fibonacci resistance at 1.2707 (38.2% of the 1.2860/1.2612 bear-leg), with the bounce from the 1.2612 higher base supported by a rising and thickening daily Ichimoku cloud.

A sustained break of the 1.2700/07 barriers would generate a bullish signal, targeting the next levels at 1.2736 and 1.2765 (50% and 61.8% Fibonacci retracement, respectively).

However, caution is warranted as the 14-day momentum remains in negative territory. Nonetheless, the near-term bullish bias is expected to remain as long as the price action stays above the daily cloud top, reinforced by the daily Tenkan-sen (1.2661).

Res: 1.2670; 1.2715; 1.2736; 1.2765
Sup: 1.2687; 1.2661; 1.2638; 1.2612