GBP/USD steady, around 1.3760 on UK data

• UK’s manufacturing PMI surprised to the upside in January.
• Brexit jitters continue to hurt GBP-sentiment on Thursday.
• The Sterling stays vigilant on Powell, May, Carney, US data.

The British Pound is extending the leg lower this week and is now dragging GBP/USD to the mid-1.3700s, or fresh 6-week lows.

GBP/USD depressed on Brexit concerns

Cable remains on the back foot so far this week in response to the sudden pick up in Brexit concerns after the EU’s Brexit draft was published on Wednesday. It is worth recalling that UK’s PM Theresa May immediately rejected the EU’s proposal.

In the meantime, the demand for GBP remains subdued and navigating in fresh 6-week lows. Today’s better-than-expected manufacturing PMI for the month of January (55.2) failed to spark any noticeable reaction in Cable.

Further results from the UK docket saw M4 Money Supply expanding at a monthly 1.5% in January and Mortgage Approvals rose to 67.48K in the same period. On the not-so-bright-side, Mortgage Lending, BoE Consumer Credit and Net Lending To Individuals all came in below expectations.

Ahead in the day/week, Powell’s testimony before the Senate Banking Committee will be the salient event ahead of January’s US ISM manufacturing. On Friday, PM T.May and Governor M.Carney are due to speak.

GBP/USD levels to consider

As of writing, the pair is losing 0.07% at 1.3751 facing the immediate support at 1.3742 (low Mar.1) followed by 1.3658 (high Sep.20 2017) and finally 1.3457 (2018 low Jan.11). On the other hand, a breakout of 1.3765 (low Feb.9) would aim for 1.3783 (55-day sma) and then 1.3926 (10-day sma).