Along with the poor retail sales data on Thursday, now we have the extremely poor PMI data published on Friday 22 from the UK during European morning hours. These data reflect a slowing of economic activity in the country as both the manufacturing index and the service sector index fell below the level 50 which is the equilibrium level of these indicators. The manufacturing index has come out with a value of 49.1 while the value of the service sector has been 47.4, well below the previous month and the market consensus which did not expect this abrupt descent. ¿Serán los primeros síntomas del efecto Brexit?
The currency pair GBP/USD has generated a bearish move of more than 100 points, losing the gains that had accumulated early in the morning and falling into substantial losses of about -0.66%, fighting in the area of 1.3100. The pair has reached an important support level at 1.3100 and there is some likelihood that the market bounce at this price, but if it falls below this level the price could easily reach 1.3000.
Meanwhile, the GBP/JPY plunges strongly due to the effect of these economic data causing a fall of 135 points in a short space of time. Now the pair is settling back into the psychological level of first grade at 140.00, where buyers and sellers will fight for several days. While the price does not exceed the resistance defined by a medium-term range passing through the 140.94 level, it will not acquire upward pressure in the near term. On the downside the first important support level of this pair is at 138.26.
Finally the EUR/GBP has risen sharply around 0.61% to the 0.84 area. In this currency pair we have the first resistance at 0.8388, which the price is trying to overcome at this moment and in the downside the first important support is located at 0.8299.