GBP Trading Outlook (04-07-2011)

The Sterling (GBP) was left behind in the risk rally for the 3rd day after the June UK PMI manufacturing data surprised once again to the downside at 51.3 vs. 52.0 previously. EUR/GBP is testing new highs in the 0.9000 but the recent highs are lofty and if sterling support could provide very good selling levels historically. Overall the GBP/USD traded with a low of 1.5987 and a high of 1.6095 before closing the day at 1.6075 in the New York session. Looking ahead, June PMI construction forecast at 53.7 vs. 54 previously.

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