GBP/USD holds weaker below 1.30 handle, 2-week lows post-UK PMI

   “¢   Carney’s comments prompt some fresh selling on Friday.
   “¢   Disappointing UK services PMI does little to ease the bearish pressure.
   “¢   Today’s key focus would remain on the US monthly jobs report.

The GBP/USD pair broke down of its Asian session consolidation phase and held below the key 1.30 psychological mark post-UK services PMI.

The pair extended post-BoE slump and was further weighed down by the BoE Governor Mark Carney‘s comments on Friday, highlighting Brexit risks. Speaking to BBC Radio, Carney said that the possibility of a no deal Brexit is uncomfortably high and the UK economy has grown by a percentage point less than we had predicted prior to Brexit vote.

The bearish pressure remained unabated following the release of disappointing UK Services PMI, coming in at 53.5 for July as compared to 54.7 expected and 55.1 previous, with the pair struggling near two-week lows and hanging within striking distance of YTD lows, touched on July 19.  

It would now be interesting to see if the pair is able to find any buying interest at lower levels or bearish traders maintain their dominant position as the focus now shifts to the keenly watched US monthly jobs report, popularly known as NFP.

Technical levels to watch

The YTD low, around the 1.2960-55 region might act as an immediate support, below which the pair is likely to accelerate the fall towards testing the 1.2900 handle.  

On the upside, any meaningful recovery attempt now seems to confront fresh supply near the 1.3065-70 region, above which the pair is likely to aim towards reclaiming the 1.3100 handle.