GBP/USD losing ground on PMI

The British pound is now giving away further ground, sending GBP/USD to test the lower end of the range near 1.3200 the figure.

GBP/USD offered post-PMI

Spot has come under renewed selling pressure after July’s final manufacturing PMI missed expectations at 48.2 (the lowest level since early 2013) vs. 49.1 forecasted and 49.1 previous.

The pair is now returning to the negative territory, shedding around two cents since Friday’s peaks in the 1.3300 region and ahead of US ISM Manufacturing (53.0 exp.). Later in the week, Construction PMI (Tuesday) and Services PMI (Wednesday) will precede the critical BoE meeting (Thursday), with market bets pointing to a 25 bp rate cut.

GBP/USD levels to consider

As of writing the pair is retreating 0.11% at 1.3214 facing the next support at 1.3149 (20-day sma) followed by 1.3061 (low Jul.20) and then 1.2849 (low Jul.11). On the flip side, a break above 1.3321 (23.6% Fibo of 1.5020-1.2796) would expose 1.3481 (high Jul.15) and finally 1.3535 (high Jun.29).