GBP/USD slides farther below 1.30 mark post UK PMI

The GBP/USD pair once failed to build on early up-move back closer to Friday's high resistance near the 1.3030 region and dropped to fresh session following the release of UK manufacturing PMI.

Currently trading around 1.2975-70 region, the pair accelerated its downslide after the UK manufacturing activity slowed more than expected in June. In fact, the Markit’s UK manufacturing PMI retreated sharply to 54.3 in June, down from previous month’s 56.7 and way below consensus estimates pointing to a reading of 56.5.

Meanwhile, a broad-based greenback recovery, with the key US Dollar Index extending Friday’s tepid recovery move from nine-month lows, also collaborated to the weaker tone surrounding the major.

Later during the NA session, the release of US ISM manufacturing PMI would now be looked upon for some fresh impetus. In the meantime, the USD price-dynamics would act as an exclusive driver of the pair’s movement through European session on the first trading day of a new week. 

Technical levels to watch

A follow through selling interest has the potential to drag the pair further towards 1.2925-20 horizontal support, which if broken would turn the pair vulnerable to extend the slide further below the 1.2900 handle towards testing its next support near 1.2860-55 region.

On the upside, 1.3025-30 region remains immediate resistance, above which a fresh bout of short-covering could lift the pair beyond yearly high resistance near 1.3050 region and pave way for continuation of the near-term upwards trajectory towards reclaiming the 1.3100 handle.