GBP/USD fades the spike to 1.3280 post-PMI

GBP/USD is now fading the earlier bullish attempt towards the 1.3280 region following a lower-than-expected construction PMI in the UK.

GBP/USD still weak on USD-buying

Cable remains entrenched in the negative territory during the first half of the week after UK’s construction PMI surprised to the downside today, coming in at 48.1 for the month of September vs. 51.0 forecasted and August’s 51.1.

In the meantime, the buying interest stays well and sound around the buck, keeping the risk-associated space under pressure while the pair continues to navigate the area of 3-week lows in the mid-1.3200s.

Adding to GBP weakness, there seems to be no significant progress in the ongoing Brexit talks, all collaborating with the persistent uncertainty surrounding UK politics.

GBP/USD levels to consider

As of writing the pair is losing 0.19% at 1.3253 facing the next support at 1.3162 (low Sep.14) followed by 1.3123 (55-day sma) and then 1.3017 (38.2% Fibo of the 2017 up move). On the upside, a break above 1.3346 (21-day sma) would open the door to 1.3424 (high Sep.26) and finally 1.3591 (2014-2017 downtrend).