Global macro overview for 05/05/2017:
The PMI services data from the UK beat the market expectations. The figure released yesterday was at the level of 55.8 points, which is better than the last month reading of 55.0 points and better than market expectations of 54.8 points (the second highest since mid-2015). Moreover, the Markit/CIPS reported that according to its PMI surveys the British economy was expanding at a 0.6% pace in the second quarter, but this positive momentum might be lost soon as rising prices continued putting significant pressure on households and the UK companies lowered their outlook for economic growth and business activity in the sector.
Let's now take a look at the GBP/USD technical picture on the H4 timeframe. The market is still trading near the recent highs around the level of 1.2963, but the upwards momentum is visibly worsening. Nevertheless, the technical support at the level of 1.2772 is still holding the line, so as long as this level is not violated, the bias remains to the upside with occasional corrections along the way. The next support is seen at the levels of 1.2859 and 1.2828.
