How to trade the UK Services PMI with GBP/USD

Buying GBP/USD Scenario

• Tradable Positive Trigger: +1.03 deviation (54.27 ) [BUY Pair]
• Key Resistance Level:  1.3315

This time, if it comes out at higher than expected with a relative deviation of 1.03 or higher(54.27 or higher in actual terms), the pair may go up reaching a range of 26  pips in the first 15 minutes and 76 pips in the following 4 hours.  

1.3215 was a high point on June 29th. 1.3315 was the peak on June 22nd. Much higher above, 1.3445 was a swing high in mid-June.

Selling GBP/USD Scenario

• Tradable Negative Trigger: -0.747 deviation (52.0782) [SELL Pair]
• Fundamental Support Level: 1.3095

If it comes out lower than expected at a relative deviation of -0.747 or less(52.0782 or lower in actual terms), the GBPUSD may go down reaching a range of 34 pips in the first 15 minutes and 80 pips in the following 4 hours.

1.3095 was the low point on July 2nd. Further down, 1.3050 is the 2018 low. Even lower, the round level of 1.3000 is next.

GBP/USD Levels on the Chart

More data

Services is the largest sector in the UK and any changes in the sentiment of leaders in this sector has an impact on the economy and on the British Pound. Scores The recent scores around 54 reflect OK growth. The 50-point threshold separates expansion from contraction.

Preview: UK services are set to drive the growth and boost Sterling on holiday-thinned Independence Day

In the last five releases, the GBPUSD moved, on average, 8 pips in the 15 minutes after the data release and 30 pips in the following 4 hours. The previous release had a positive surprise of 0.81 in terms of relative deviation and the GBPUSD reached a 9 pip range in the first 15 minutes and a range of 33 pips 4 hours thereafter

Follow the publication of the figure on the economic calendar. Watch out for the data from the Market Impact tool, projecting the potential price changes according to the deviation. Here is the Market Impact Studies Users Guide.