Sterling recovered intraday despite June PMIs falling below forecasts, signaling contraction in services and manufacturing sectors.
The British Pound briefly rebounded against the US Dollar on Tuesday, recovering from a dip below 1.3200 after June flash Purchasing Managers Index data disappointed. The UK services PMI slid to 48.7, missing the 50.0 consensus and extending contraction, while manufacturing also underperformed expectations.
The decline in PMIs reinforced concerns over weak UK growth, with no immediate catalysts for a sustained Sterling recovery. The Bank of England’s rate outlook remained unchanged, and the calendar offers no top-tier UK data for the remainder of the week, leaving the currency vulnerable to broader USD strength.
Technical indicators suggest the bounce was short-lived, with the GBP/USD pair remaining below key moving averages. The 50-day and 200-day EMAs near 1.3400 act as resistance, while intraday momentum signals fading upside potential.