05/02/2014: Expect a volatile day on GBP/USD, with a bearish bias

The UK PMI services data missed estimates slightly with 58.3 (58.8 expected).

This has put pressure on GBP/USD which is being dragged lower to test yesterday’s low at $1.6255.

However, be careful as the US ISM Non-Manufacturing number is out at 15:00GMT and if it is anything like the disappointing manufacturing number there could be a sharp jump in Cable this afternoon.

If this is the case, I am looking to sell into any bounce as I think that the key December low at $1.6319 will come under pressure in due course.

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