The British Pound is under pressure after the release of the UK manufacturing PMI down to 51.4 in June against expectations of 52.5. The manufacturing sector grew at its weakest rate in more than two years, weighed by subdued export demand from Europe.
The GBP/USD accelerated south and pressures the 1.5645 strong static support, the 38.2% retracement of the latest bullish run, with the pair poised to extend its decline on a break below it. The 4 hours chart shows that the technical readings support such decline, as the price extended below its 20 SMA whist the technical indicators are gaining bearish momentum below their mid-lines. A break below the level should lead to a test of the 1.5600 figure, in route to 1.5550, the 50% retracement of the same rally.
The immediate resistance comes at 1.5700, with some steady gains above the level required to revert the negative tone intraday, and signaling a probable recovery up to the 1.5750 region.
View live chart of the GBP/USD
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