GBP/USD breaks below 1.2900 ahead of data

Pablo Piovano FXStreet

The Sterling is now quickly losing the grip, dragging GBP/USD to test the area of session lows in the 1.2900 neighbourhood.

GBP/USD focus on UK data

The pair rapidly lost more than 50 pips from overnight tops near 1.2950 to the current area near the critical support at 1.2900 the figure, as market participants keep reacting to recent FT news citing EU leaders will not negotiate Brexit terms with UK’s PM Theresa May.

Spot keeps meandering around the upper end of the recent range, with the interim resistance at fresh multi-month tops at 1.2970 seen last Friday. Recent upbeat reading from the key manufacturing PMI gave extra legs to Cable, although the upcoming Brexit negotiations should prove to be a critical driver for GBP in the months to come.

Later in the session, UK’s Construction PMI is only due, with expectations around 52.0 for the month of April. Across the pond, the focus of attention will be on the ADP report (180K expected) and the ISM Non-manufacturing.

GBP/USD levels to consider

As of writing the pair is losing 0.36% at 1.2893 facing the immediate support at 1.2864 (low May 2) followed by 1.2758 (low Apr.21) and finally 1.2709 (20-day sma). On the flip side, a breakout of 1.2970 (2017 high Apr.28) would aim for 1.3000 (psychological level) and then 1.3060 (high Sep.29 2016).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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