The UK PMI report released by CIPS and Markit showed a major increase from 45.2 up to 49.5 in August. This is the highest performance in 4 months. The actual figures also exceeded analysts’ expectations (according to the survey conducted by The Guardian).
Despite the fact that the index is showing a positive tendency, it is still below 50.0, which is the critical level. Growth starts above 50.0. However, the latest data make it possible to reconsider the current state of affair in the British economy. According to Scotiabank, the UK economy is in stagnation rather than recession.
Forex.
According to , the British Pound has strengthened a bit against the US Dollar. The experts report that GBPUSD is forming an upswing represented by wave a(С) or shortened С of wave level Н16.
A further rally (if the price breaks above 1.5911) will probably encounter resistance around 1.5974. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1.5777 (as shown below).
