GBP/USD tumbles to lows near 1.2870 ahead of PMI

The Sterling is now losing some of its shine, dragging GBP/USD to visit the area of daily lows in the 1.2875/70 band.

GBP/USD focus on data

After clinching fresh multi-month peaks in the 1.2970 region on Friday, Cable started the week on the defensive, shedding around a cent since those tops as concerns over the likeliness of a ‘hard Brexit’ scenario seem to have re-surfaced among investors.

The softer tone around the buck is not helping either, as GBP weakness appears to feed on purely domestic issues, particularly after the meeting between PM Theresa May and European Commission’s Jean-Claude Juncker.

Looking ahead, UK’s Manufacturing PMI for the month of April is due later with consensus seeing a small retracement to 54.0 vs. March’s 54.2. Nothing noteworthy data wise in the US docket, while markets slowly gear up for the FOMC meeting (Wednesday) and Payrolls figures (Friday).

GBP/USD levels to consider

As of writing the pair is losing 0.08% at 1.2875 facing the immediate support at 1.2864 (low May 2) followed by 1.2758 (low Apr.21) and finally 1.2685 (20-day sma). On the flip side, a breakout of 1.2970 (2017 high Apr.28) would aim for 1.3000 (psychological level) and then 1.3060 (high Sep.29 2016).