UK PMI Construction in February dropped from 48.7 to 46.8 against forecast for 49.2. Today at 13:30 GMT+4 UK PMI Services in February is published. It is expected to be 51.1 against 51.5 in January. Taking into account the drop in PMI Manufacturing (data was issued on March 1) from 50.8 to 47.0, PMI Services may be worse than expected. On the other hand, BRC Retail Sales Monitor in February rose from 1.9% to 2.7%. However, such type of indices is not always congruent with the dynamic in the real sector. Composite PMI in the Euro Area and in the US are issued, it is expected that both indices show worse results.
The key scenario is bearish. If the level of Fibonacci on the H4 423.6% is broken, the price will test the range of the Fibonacci channel to the level of 1.5056. Then the target is support of the trendline on the daily chart 1.5072. After the price consolidates under it, it will be in the price range of the support on the daily chart 1.4954/80. The growth is possible after the price consolidates under 1.5139, the today’s high. The first target is 1.5198, the level of Fibonacci on the H4 361.8%. The second target is resistance of the Fibonacci channel 1.5260.
