The UK’s February services PMI beat expectations, with the headline rising to a best-in-four-months 54.5 reading after 53.0 in January. The median forecast had been for 53.3. The survey found the strongest upturn in new work since May 2017, a rise in job creation, while input cost inflation dipped to the lowest rate in 18 months, driving a moderation in prices charged. A benefits of the strong global economy was cited by survey respondents in the service sector, helping offset the ongoing erosion in average real incomes. The survey also showed a rise in the backlog of incomplete business, with Markit, the compiler of the PMI surveys, noting anecdotal evidence showing that difficulties in recruiting suitably skilled staff were pressuring operating capacity.
Cable popped north of 1.3800, to peak at 1.3830 so far today. The Crossing EMA H1 Strategy would have completed the ATR Target approach for 20 pips from the 10:00 candle. However, the entry at 11:00 although technically was in line, the fundamentals of the PMI number at 11:30 would have negated the entry. The news was positive and the 11:00 candle would have been a more conservative entry as all the other technical indicators remained positive, with the addition of the break of the latest Fractal high adding to momentum.
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