- GBP / USD continued to advance higher for the fifth consecutive session on Wednesday.
- Optimistic market sentiment eroded the safe haven dollar and remained favorable.
- The upward revision of the British services PMI did not provide significant momentum.
GBP / USD kept its modest daily gains, although it struggled to bring it back below 1.2600 round numbers after UK macro data.
The pair extended its recent bullish momentum and continued to gain ground for the fifth consecutive session on Wednesday. The dominant sell-off trend for the US dollar took the GBP / USD pair to new one-month highs – levels just above the 1.2600 mark – during the Asian session.
However, serious Brexit concerns have kept a lid on the significant follow-up gains for the GBP / USD pair. It should be recalled that the UK has rejected reports that Prime Minister Boris Johnson was ready to compromise on key issues such as fishing and a level playing field.
Meanwhile, the publication of the final PMI for British services on Wednesday went largely unnoticed and did little to give a significant boost to the pound. The service sector gauge was revised up to 29.0 for May from 27.8 estimated earlier, but did not impress the bulls.
Later at the start of the North American session, the US macroeconomic data could influence the price dynamics in USD and produce significant trading opportunities. Wednesday’s US economic report highlights the publication of the ADP report on private sector employment and the non-manufacturing PMI ISM.