GBP/USD reverses UK PMI-induced drop, re-takes 1.3200

The latest leg lower in the GBP/USD pair found some support near 1.3170 region, now sending the rate back towards 1.32 handle.

GBP/USD: re-attempts 1.3200

Currently, GBP/USD trades -0.29% lower at 1.3190. Recovering quickly from a dip to 1.3173 – session lows. The cable ran through fresh offers following a breach of 1.32 barrier and extended to the downside on the back of poor UK PMI report. While fresh selling seen in the GBP/JPY cross also sent the core pairs such as the cable lower.

Calendar-wise, the final Purchasing Managers' Index (PMI) in the UK dropped to 48.2 points in July, as compared to a 49.1 reading booked in June. Markets had predicted a steady print at 49.1.

Next in focus remains the US manufacturing PMI reports from both the Markit and ISM are due on the cards later in the NA session.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3272/76 (daily top/ R3), above which 1.3300 (round figure) would be tested. On the flip side, support is seen at 1.3173/71 (daily low/ 20-DMA) below that at 1.3150 (psychological levels).