GBP/USD dips below 1.3200 on PMI

The Sterling met extra selling pressure after the release of the PMIs today, now sending GBP/USD back below the 1.3200 handle.

GBP/USD lower post-PMIs

Spot accelerated its downside after mixed results from UK’s PMIs showed the manufacturing PMI has surpassed expectations at 49.1 vs. 47.8 forecasted, while the more relevant Services PMI dropped to 47.4, the lowest level since March 2009 (45.5).

The pair has quickly surrendered daily gains and retreated towards fresh lows in the 1.3180 region in the wake of the release, opening the door for a potential test of yesterday’s troughs in the mid-1.3100s.

GBP/USD levels to consider

As of writing the pair is losing 0.42% at 1.3175 and a break below 1.3156 (low Jul.21) would aim for 1.3061 (low Jul.20) and then 1.2849 (low Jul.11). On the flip side, the next hurdle aligns at 1.3321 (23.6% Fibo of 1.5020-1.2796) followed by 1.3481 (high Jul.15) and finally 1.3535 (high Jun.29).