Although the British pound (GBP) has been volatile this week, it has today shown a green bullish candle against the US dollar (USD).
The British pound (GBP) gained ground against the US Dollar (USD), pushing the GBP/USD currency pair above 1.3800 amid the data of Markit Manufacturing PMI.
Yesterday, the Chartered Institute of Purchasing & Supply and Markit Economics released the Markit Manufacturing PMI with a reading of 60.9 this month compared to the month before data of 60.7.
The PMI manufacturing is a measure of the manufacturing sector’s economic health in the United Kingdom. It’s worth remembering that the service sector in the United Kingdom does not affect, either positive or negative. A reading of more than 50 indicates expansion, while a reading of less than 50 indicates contraction.
As of this writing, the GBP/USD currency pair hovers around a price of 1.3892. With the assistance of support levels which keep the price of GBP/USD to the said level and also prevent the price from further dropping.
Moreover, the Bank of England (BoE) is scheduled to release figures amid interest rate decision news on Thursday (May 06, 2021). As per the view of FXStreet.com economists, the BoE interest rate decision news might remain unchanged with a reading of 0.1% in April 2021 compared to the reading of 0.1% in the month before.
If BoE adopts a hawkish approach towards the country’s inflationary outlook and raises interest rates, it indicates positive economic development.
Conclusion
Given the pair’s macroeconomic outlook, buying the pair about 1.3950 could be a better choice in the short term.