The Sterling is trading on the defensive in the second half of the week, now dragging GBP/USD to the area of session lows in the 1.2865/60 band.
GBP/USD attention to PMI
Cable is retreating for the first time after three consecutive advances, although the weekly up move still appears capped by the 1.2900/20 band.
GBP has weathered well the recent election polls results showing Conservatives remain on the lead albeit by a narrower gap vs. Labour in the run up to the general elections next week.
In the meantime, weaker-than-expected PMI in China seems to be weighing on the risk-associated universe for the time being, while the more favourable context for the greenback is also adding to the selling bias in spot.
Looking ahead, UK’s manufacturing PMI will be the salient event in the European morning, while the ADP report and the ISM manufacturing will be in the limelight across the pond later in the session.
GBP/USD levels to consider
As of writing the pair is losing 0.23% at 1.2860 facing the immediate support at 1.2770 (low May 31) followed by 1.2758 (low Apr.21) and then 1.2729 (55-day sma). On the flip side, a breakout of 1.2921 (high May 31) would aim for 1.2922 (20-day and finally 1.2949 (high May 26).