The Pound is giving away its early gains, after the release of a worse-than-expected UK Markit manufacturing PMI. According to official data, manufacturing activity fell into contraction territory, with the final reading down to 49.2 in April, the lowest in over three years.
The GBP/USD pair advanced up to 1.4769 with London's opening on the back of dollar's sell-off, but is now pressuring the 1.4700 level, with a clear bearish divergence between price action and the Momentum indicator in the 4 hours chart. Nevertheless, the price holds above a bullish 20 SMA now at 1.4635, the level to break now to confirm a steeper downward move.
In the meantime, an given broad dollar's weakness, the upside remains favored, and if the pair recovers above 1.4730, the downside will be denied, and the price will likely retest the 1.4770 region, en route to 1.4810/20.
View the live chart of the GBP/USD
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