It’s big because services make up around 75% of the UK economy.
Late in 2013 we hit the highs at 62.5 and on such a strong run it was no surprise to see some consolidation. The pattern has been the same across the other PMI’s this week so a lower number will be the bigger risk to sterling.
A number below 58 will see the pound come off sharply. 1.7140 has been support but it might be 1.7100 that needs defending.
If we nudge back into the 60’s then 1.72 is going to be targeted. It’ may be a tough one to crack, particularly with dollar traders having one eye on the NFP later.
I think I’ll dangle a line in at 1.7195 with a stop above 1.7220 and see how we do.
