GBP/USD drops further to 1.3230 ahead of UK PMI

The selling pressure behind the GBP picked-up pace post-European open, now pushing GBP/USD to fresh session lows towards 1.32 handle.

GBP/USD: 5-DMA at 1.3213 still in focus?

Currently, GBP/USD trades modestly flat near fresh session lows of 1.3230, heading for a test of 5-DMA to the downside. The cable wiped-out almost entire gains and now treads water, with the bears in control ahead of the UK manufacturing PMI release.

After a sharp drop seen in the UK’s manufacturing sector activity in June, the British manufacturing PMI gauge is expected to show no growth and remain unchanged at 49.1 point in July.

Focus also remains on the US ISM manufacturing PMI reading due later in the NA session, for fresh hints on the strength of the US economic recovery, particularly after Friday’s dismal growth numbers.

While the main highlight for this week remains the BOE interest rate decision due out on Thursday, with the central bank widely expected to lower the main rate by 25 bps to 0.25%.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3272/76 (daily top/ R3), above which 1.3300 (round figure) would be tested. On the flip side, support is seen at 1.3213 (5-DMA) below that at 1.3180/74 (10 & 20-DMA).

`