FxWirePro: GBP/USD edges higher after strong UK business activity data

• GBP/USD moved slightly higher on Thursday after data showed strong UK business activity, with both manufacturing and services sectors contributing to a faster pace of growth.

• A survey showed British businesses are seeing their best month in a year, led by a recovery in the services sector, highlighting the UK’s economic outperformance in Europe.

• The PMI, encompassing both manufacturing and services, rose to 53.0 in August the highest since last year up from 51.5 in July. The PMI for the services sector rose to 53.6 from July's 51.8.

• The preliminary S&P Global UK Composite PMI for August, released Thursday, offers positive news for Finance Minister Rachel Reeves, who has faced challenges in delivering on her pledge to accelerate economic growth.

• Market attention now shifts to Fed Chair Jerome Powell’s remarks at the Jackson Hole symposium (Aug 21–23), which may provide clarity on the central bank’s economic outlook.

•   Immediate resistance is located at 1.3625(Higher BB), any close above will push the pair towards 1.3767(23.6%fib)

•  Strong support is seen at 1.3454 (38.2%fib) and break below could take the pair towards 1.3408(SMA 20).

  Recommendation: Good to sell around 1.3470  with stop loss of 1.3550 and target price of 1.3410