0850 GMT [Dow Jones] Early signs of a GBP/USD base have emerged, and buying a break above 1.6350 is favored, says MIG Investments chief market strategist Howard Friend. His next target would be last week's 1.6546 high, where a break above would suggest a corrective low is finally in place and open the topside towards 1.6743 and the high of 1.7043. Alternatively, the failure to see a weekly close above 1.6350 will keep pressure on the downside, says Friend, although only below 1.5985 would he turn bearish on a multi-month timeframe with a target of the 1.50 area. GBP/USD now at 1.6356. (GST)
Contact us in London. +44-20-7842-9464
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LONDON (Dow Jones)--The U.K.'s dominant services sector once again expanded in August, with the Purchasing Managers' Index for the sector reaching its highest level in almost two years.
Research group Markit Economics and the Chartered Institute of Purchasing and Supply Thursday said the services PMI rose to 54.1 in August from 53.2 in July.
Economists surveyed by Dow Jones Newswires last week had forecast the PMI would increase to 54.0.
A reading above 50.0 indicates the sector is expanding, while a reading below 50.0 indicates it is contracting.
"We've really seen a strong turnaround in the U.K. services sector in recent months," said David Noble, chief executive officer at CIPS. "Nonetheless, the market is still somewhat fragile and purchasing managers said growth was largely driven by reducing backlogs and continued discounting was needed to boost sales in a bid to beat tough competition."
The survey also showed new orders picked up in August, while business expectations also improved in August reaching their highest level in two years.
-By Laurence Norman, Dow Jones Newswires; +44 20 7842 9270; [b][i][email protected][/i][/b]
Contact us in London. +44-20-7842-9464
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LONDON (Dow Jones)--The U.K.'s dominant services sector once again expanded in August, with the Purchasing Managers' Index for the sector reaching its highest level in almost two years.
Research group Markit Economics and the Chartered Institute of Purchasing and Supply Thursday said the services PMI rose to 54.1 in August from 53.2 in July.
Economists surveyed by Dow Jones Newswires last week had forecast the PMI would increase to 54.0.
A reading above 50.0 indicates the sector is expanding, while a reading below 50.0 indicates it is contracting.
"We've really seen a strong turnaround in the U.K. services sector in recent months," said David Noble, chief executive officer at CIPS. "Nonetheless, the market is still somewhat fragile and purchasing managers said growth was largely driven by reducing backlogs and continued discounting was needed to boost sales in a bid to beat tough competition."
The survey also showed new orders picked up in August, while business expectations also improved in August reaching their highest level in two years.
-By Laurence Norman, Dow Jones Newswires; +44 20 7842 9270; [b][i][email protected][/i][/b]
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