GBP/USD depressed around 1.3360, eyes on UK PMI

The pick up in the demand for the greenback has relegated GBP/USD to trade in the area of daily lows near 1.3350.

GBP/USD weaker on USD-buying

The broad-based recovery in the US Dollar keeps weighing on the risk-associated space at the beginning of the week, prompting Cable to extend the negative momentum seen on Friday while navigating at the same time near 2-week lows.

In the meantime, the pair is retreating for the third consecutive week after being rejected from fresh cycle tops in the 1.3655/60 band (September 20), always amidst UK political uncertainty, lack of direction from Brexit talks and a better sentiment towards the buck.

News from the positioning front saw the speculative community now shifting to GBP longs for the first time since early November 2015 during the week ended on September 26, according to the latest CFTC report.

Looking ahead, UK’s manufacturing PMI for the month of September is due later followed by an interview by Chancellor P.Hammond by BBC Radio.

In the US docket, Markit’s manufacturing PMI is next on tap, seconded by the more relevant ISM manufacturing. Around the Fed, Dallas Fed R.Kaplan (voter, hawkish) is also due to speak.

GBP/USD levels to consider

As of writing the pair is losing 0.26% at 1.3362 facing the next support at 1.3343 (low Sep.28) followed by 1.3335 (21-day sma) and then 1.3262 (23.6% Fibo of the 2017 up move). On the upside, a break above 1.3459 (10-day sma) would open the door to 1.3517 (high Sep.26) and finally 1.3594 (2014-2017 downtrend).