Yesterday Markit released the Flash Services PMI data for the UK, for the month of April. According to the findings of the report, the British Services Industry has contracted by 22.2 points, which is the steepest monthly decline on record.
The consensus forecasts were anticipating a fall to 28.5 points from the 34.5 points that were observed in March when the economic toll from the coronavirus fallout was starting to impact the Services industry.
Nevertheless, Markit registered a much more substantial collapse to 12.3 points, which underpins a monthly deterioration that is more than two times bigger compared to the initial forecasts.
UK Services PMI. Image source: TradingEconomics.com
Meanwhile, the British Manufacturing PMI tumbled from 47.8 points in March to 32.9 points in April, thereby missing the consensus forecasts of a smaller contraction to 42.0 points.
Boris Johnson's Government resumes working towards mitigating the economic woes as the healthcare crisis continues to deepen. The PM, who was recently released from the ICU after his condition improved, is starting to face a backlash at home as the UK does not have a comprehensive plan for reopening the economy.
Despite the gloomy outlook for the British economy, however, the pound continues to consolidate in a narrow range against the US dollar.
The GBPUSD is currently trading within the boundaries of an Accumulation range, with an upper edge represented by the minor resistance level at 1.23730 and a lower edge characterised by the minor support level at 1.23070.
Two test areas have been illustrated on the chart below, which the underlying price action needs to break out above before a new bullish trend can be established.
GBPUSD 1H Price Chart. Image source: Trendsharks ©, created with TradingView.com
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