GBP/USD visits fresh lows post US-data

The GBP/USD pair dropped to daily lows as the demand for the greenback resurged following the macro data. At the moment, the pair is down 0.65% at 1.2468.

Although the data came in mixed from the United States, the US Dollar Index was able to leap above 100.50 during the NA session. Final US Manufacturing PMI released by Markit showed that the manufacturing growth slowed to a six-month low in March. However, further details of the report showed that the input cost inflation hit the highest in more than two years, suggesting a possible upside pressure to be reflected in the consumer inflation. In addition, the Manufacturing PMI reported by the ISM, which is considered to be a good leading indicator, revealed that the in employment sub-category continued to grow in March.

US: PMI shows growth in manufacturing for the seventh consecutive month - ISM

Earlier in the session, New York Fed President William Dudley in his prepared remarks didn't touch on the monetary policy. Next in line are the speeches by Philadelphia Fed President Patrick Harker and Richmond Fed President Jeffrey Lacker.

Technical outlook

With a drop below 1.2450 (Fib. 61.8% of Dec/Jan fall), the GBP/USD could aim for  1.2405/10 (50-DMA/100-DMA) and 1.2340 (Mar. 21 low/20-DMA). On the upside, the first hurdle for the pair aligns at 1.25 (psychological level) followed by 1.2560 (Mar. 31 high) and 1.2615 (Mar. 27 high).