After rising for seven days in a row, the British pound finally succumbed to weaker economic data.
Service sector PMI and industrial production all fell short of expectations illustrating the difficult time that UK manufacturers are having with the high value of the British pound. Like the ECB, the Bank of England will also be meeting to decide on interest rates. If they leave monetary policy unchanged, no statement will be released. We suspect that tomorrow’s UK GDP number could be softer as well, but the biggest driver of pound strength or weakness is not UK fundamentals but US fundamentals. According to our Technical Analyst Jamie Saettele, the GBPUSD is poised to take out 2.10.