GBP/USD forex technical analysis round-up: Jul. 5

ForexNewsNow – The Pound was gaining ground against the Dollar today, trading at 1.6114 as of around 10:30 A.M., GMT.

The Pound is up 0.19% on the day and has reached a session high of 1.6129 with a low of 1.5991 so far.

Earlier in the day, the Chartered Institute of Purchasing and Supply (CIPS) released its Purchasing Manager’s Index (PMI) report which came out higher than predicted at 53.9.The previous PMI had come out at 53.8 last month and the prediction this time was for a PMI of 53.5.

This positive figure indicates a healthy service sector in the UK and could be responsible for the Pound gaining ground against the Dollar.

Later in the day the US Census Bureau was to publish government data on factory orders.

This is what the leading forex analysts had to say about the heavily traded currency pair in the near and medium-term:

– According to DailyFX, the sterling may continue to trade heavy in July as the economic docket continues to show a slowing recovery in the U.K. As growth prospects deteriorate, the Bank of England looks as though it will continue to support the economy throughout the second-half of 2011, and the central bank may preserve its dovish tone for the remainder of the year as it aims to balance the risks for the region. As the BoE shows an increased willingness to expand monetary policy further, the GBP/USD may continue to retrace the advance from earlier this year as interest rate expectations deteriorate.