Pound Sterling Best Performer following positive UK data

The GBP/USD pair rallied from a 50% mean reversion of Friday’s bullish run and broke to 1.2150 on Tuesday, breaking a key resistance around 1.2050 which has invalidated the prior downside bias.

The pound sterling achieved strong gains during the US session, Tuesday, and was the most major currency gainer, by an estimated rate of 5.28%, benefiting from the positive economic data issued in the United Kingdom, which reinforced optimism about the ability of the British economy to recover quickly, and this in turn supports the Bank of England’s moves to continue to tighten monetary policy.

The initial reading of the PMI in the manufacturing sector in Britain came out positive and exceeded expectations, recording 49.2 points, which is much better than expectations that indicated the contraction of the manufacturing sector in Britain to 47.5 points, and it is also better than the previous reading, which recorded 47.0 points in January.

During the same month, the preliminary reading of the PMI index for the service sector in Britain surged to 53.3 points, which is a very positive reading, as it came better than the market expectations indicated by the index contraction and recording 49.2 points in February, after Britain had recorded last month a contraction in the service sector. at 48.7 points, and this positive data had a positive impact on the Sterling’s trading versus rival currencies.