Business activity in the U.K. was stronger than expected in December. Services PMI improved to 50.0, up from 49.3 a month earlier. This figure beat the estimate of 49.1 pts. The 50-level separates contraction from expansion, so a reading of 50.0 indicates no change in services activity in December. Other key sectors of the economy remain in decline. Last week, Final Manufacturing PMI, slowed to 47.5, down from 48.9 a month earlier. The PMI has not pointed to expansion since April, as the manufacturing sector remains in decline. There was no relief from Construction PMI, which slipped from 45.3 to 44.4, shy of the estimate of 45.8 pts.
GBP/USD continues to test resistance at 1.3150. Above, we find resistance at the 1.32 line. On the downside, 1.3050 has some breathing room in support, after GBP/USD posted strong gains on Monday. Below, there is support at 1.30, which has psychological significance.