GBP/USD drops to lows near 1.3060 on PMI

Cable faces further downside pressure post-PMI.
UK Manufacturing PMI disappointed in January, at 52.8.
Lack of Brexit headlines seems to be weighing on Sterling.

Pablo Piovano FXStreet

The British Pound is now accelerating the daily leg lower and is forcing GBP/USD to retreat to new daily lows in the 1.3080 region.

GBP/USD offered on weaker PMI, challenges 200-day SMA

Cable is extending the negative mood in the second half of the week and is now trading at shouting distance from weekly lows in the mid-1.3000s, where sits the critical 200-day SMA.

The British Pound has intensified the negative mood today after the key UK manufacturing PMI came in at 52.8 in January, below expectations and down from December’s 54.2.

In the meantime, the absence of headlines from the Brexit front is at least noticeable, particularly following the events seen earlier in the week. All in all, the lack of fresh news seems to be weighing on GBP so far.

GBP/USD levels to consider

As of writing, the pair is losing 0.36% at 1.3059 and faces the next support at 1.3048 (200-day SMA) seconded by 1.3012 (low Jan.24) and then 1.2938 (21-day SMA). On the flip side, a break above 1.3217 (2019 high Jan.25) would open the door to 1.3257 (monthly high Oct.12 2018) and then 1.3298 (monthly high Sep.20 2018).

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Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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