Yesterday data on UK Services PMI in May was published. It was 54.9 vs. expectations for 53.1. Amid weak economic data from the eurozone and the US, the pound strengthened 93 points.
Today at 15:00 GMT+4 Asset Purchase Facility and the BoE MPC Interest Rate Announcement are scheduled. The expectations did not change, 0.5% and 375 billion pounds.
Technically, the price has reached the high of April 11 and stopped on the daily chart on the level of Fibonacci 271%, which coincides with the level of 38.2% on the H4. Marlin oscillator on the H4 gives a sign of divergence. We assume that under the pressure of European negative data the pound starts its correction. If the testing level 1.5370 is broken, the first bearish target 1.5322 (the high of May 16) opens. The second target is 1.5280 (the high of May 20), and the third target is 1.5238.
