GBP/USD will bounce back from a “Falling Wedge” pattern

The pair will bounce back from a “Falling Wedge” pattern support line, sending the pair higher towards its previous high. The United Kingdom is showing other member states that there is life outside the European Union. For the month of February, the UK’s M4 money supply grew 0.1%, slower than the previous record of 0.8%. The M4 consists of coins and notes, cash-convertible assets, short-term and long-term bank deposits, and Treasury bills. The lower the money in circulation, the stronger the British pound will be. Aside from M4, Britain will also release its Manufacturing Purchasing Managers Index (PMI) report today, March 02. Last week, the PMI level rose to 51.9 from 50.0 in the second week of February. This is also higher from the 49.7 expectations. Analysts anticipate the United Kingdom to be in an economic contraction following the Brexit, but it proved otherwise. Meanwhile, the US PMI dropped to 50.8 from 51.9 prior.