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The USD dropped against GBP yesterday as the pair reached its highest level in three years and hit 1.70 level. The catalyst for this 130 pips bullish move was due to stronger than expected U.K. Services PMI which edged higher to 58.7 in April compare to 57.6 in March. The latest upbeat survey points to a buoyant economy (the service sector accounts for +75% of the British economy) confirming the fastest pace so far this year, while jobs growth across the private sector also surged, as evident from the unemployment rate which dropped to 6.9% which is the lowest in quite a while. There seems to be no stopping for GBP and I am anticipating continuation of bullish move on this pair after BoE interest rate decision.
