GBP/USD weaker, looks to 1.3000 post-PMI

Cable drops further in the wake of PMI figures.
Key Services PMI slipped back to 50.1 in January.
Brexit headlines remain absent ahead of the February 14 vote.

Pablo Piovano FXStreet

The selling pressure around the Sterling is now picking up pace and dragging GBP/USD to the vicinity of the psychological support at 1.3000 the figure.

GBP/USD offered on poor data

Cable is intensifying the weekly leg lower after the critical Services PMI came in below expectations at 50.1 in January, the lowest level since July 2016.

The sentiment around the British Pound has been deteriorating as of late following renewed pessimism and increasing uncertainty surrounding the Brexit negotiations, all forcing spot to recede from last week’s 2019 highs above 1.3200 the figure.

Still on Brexit, UK’s PM Theresa May is expected to defend her plan to clinch a deal and avoid a ‘hard border scenario’ at today’s visit to Northern Ireland.

GBP/USD levels to consider

As of writing, the pair is losing 0.15% at 1.3016 facing the next support at 1.3000 (high Jan.17) seconded by 1.2965 (21-day SMA) and finally 1.2902 (100-day SMA). On the other hand, a break above 1.3089 (10-day SMA) will open the door to 1.3217 (2019 high Jan.25) and then 1.3257 (monthly high Oct.12 2018).

Author

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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