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GBP/USD drops to fib support on dismal UK PMI report

FXStreet (Mumbai) - The GBP/USD pair fell below 1.5087 (61.8% of Apr-Jun rally) after the gauge of manufacturing in the UK weakened more than expected.

Eyes 23.6% fib support

The pair is now eyeing 1.5074, which is the confluence of the 23.6% retracement of 1.5336-1.4994 and hourly 100-MA. The UK PMI manufacturing for November printed at 52.7 compared to the estimated drop to 53.6 from the downwardly revised October’s print of 55.2.

The pair clocked a high of 1.5125, before trimming gains to trade around 1.5110 ahead of the UK PMI report. A dismal PMI means the Sterling is on the backfoot heading into the US ISM manufacturing release later today.

GBP/USD Technical Levels

At 1.5085, the immediate support is seen at 1.5074 (hourly 100-MA+23.65 of 1.5336-1.4994). A break below the same would expose Monday’s low of 1.4994 and 1.4951 (Jan 23 low). On the other side, 1.5124 (38.2% of 1.5336-1.4994) could offer resistance, which if taken out could open doors for a re-test of 1.5164 (Sep 4 low).

United Kingdom Markit Manufacturing PMI below forecasts (53.6) in November: Actual (52.7)

United Kingdom Markit Manufacturing PMI below forecasts (53.6) in November: Actual (52.7)
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