GBP/USD: Downside opening up towards 1.3150 ahead of UK PMI, US ADP

After a brief phase of overnight consolidation, the GBP/USD pair broke to the downside and printed fresh daily lows at 1.3192 in the Asian session, with risks tilting towards downside ahead of the UK construction PMI and US ADP jobs report due on the cards later today.

GBP/USD headed to 1.3150?

The spot remains better offered so far this session, trading cautiously ahead of a fresh batch of macro news out from both the UK and US, which may provide fresh trading impetus until the announcement of the BOE policy decision and quarterly inflation report (QIR) due tomorrow.

Cable is seen extending its retreat from almost eleven-month tops of 1.3244, as the US dollar keeps its recovery mode intact against its main competitors in Asia on the back rebounding Treasury yields. The greenback slumped to 15-month lows a day before amid renewed US political upheaval and unimpressive US macro data, including the ISM PMI.

Looking ahead, the corrective slide in the major could extend on expectations of a downbeat UK construction PMI reading, while markets anticipate a solid US ADP jobs print, which could collaborate further to the corrective move lower in GBP/USD.

UK manufacturing PMI rebounds sharply to 55.1 in July

GBP/USD levels to consider             

At 1.3204, the pair still eyes a test of 1.3244/50 (11-month tops/ psychological levels & Sep 16 high) and 1.3345 (Sep 12 high). On the downside, supports could be seen at 1.3100/1.3098 (psychological level/daily low), 1.3000 (Jul 26 low) and 1.2950 (Jul 21 low).