04 July 2018 ( Lagos ) : Today’s main risk event for the British Pound will be the UK services PMI figures for June which could offer some insight into the health of the UK economy.

Growth in the UK services is projected to remain unchanged at 54.00 in June. While a figure that meets or exceeds market expectations may support the Pound in the near term, gains remain threatened by Brexit-related uncertainty.

Appetite towards the Pound is likely to diminish as anxiety heightens ahead of the looming UK cabinet meeting on Friday. Theresa May is expected to present a “third way” post-Brexit custom proposal in an effort to break the deadlock within her cabinet and the EU. Sterling could witness heavy losses if Theresa May’s proposal is met with rejections.

Will the Bank of England raise UK interest rates in August? This is a question that remains on the mind of many investors. While last week’s upward revision to first-quarter GDP growth and positive PMI figures for June may support expectations of a rate hike, Brexit uncertainty and global trade tensions could force the BoE to delay monetary policy normalization.

In regards to the technical picture, the GBPUSD remains bearish on the daily charts. There have been consistently lower lows and lower highs while the MACD trades to the downside. Daily bears remain in firm control below the 1.3290 lower high. An intraday breakdown below 1.3186 could trigger a decline towards Tuesday’s low at 1.3114. Alternatively, a bullish move above 1.3230 may signal an incline towards 1.3290.