GBP/USD comes down to test 1.29 ahead of PMI

The Sterling is now accelerating its daily decline, dragging GBP/USD to the area of fresh session lows in the 1.2900 neighbourhood.

GBP/USD attention to PMI

Cable is retreating for the first time after two consecutive daily advances, returning to the proximity of the 1.2900 handle after bulls failed to push spot further north of the 1.2945/50 band on Thursday, where the 55-day sma seems to be offering strong resistance for the time being.

Some positive comments from BoE’s Saunders plus headlines regarding the EU-UK negotiation around Brexit brought in some volatility around GBP as of late, although the USD-dynamics stay so far as the almost exclusive driver for the pair’s price action.

Later in the session, UK’s manufacturing PMI is expected to ease a tad to 55.0 in August from July’s 55.1, while non-farm payrolls and the ISM manufacturing are expected to drive the sentiment in the global markets later in the day.

GBP/USD levels to consider

As of writing the pair is losing 0.11% at 1.2915 facing the next down barrier at 1.2885 (10-day sma) seconded by 1.2853 (low Aug.31) and finally 1.2771 (low Aug.24). On the upside, a break above 1.2945 (high Aug.31) would pave the wave for a test of 1.2979 (high Aug.29) and then 1.3031 (high Aug.11).