Search ForexCrunch
  • GBP/USD edges lower on Monday and snapped two consecutive days of winning streak.
  • Bullish traders seemed unaffected by an upward revision of the UK Manufacturing PMI.
  • A goodish pickup in the US bond yields underpinned the USD and added to the selling.

The GBP/USD pair maintained its offered tone, around the 1.3100 round-figure mark through the early European session on Monday and moved little post-UK macro data.

The pair failed to capitalize on the previous session’s positive momentum to over three-week tops and came under some fresh selling pressure on the first trading day of the week, snapping two consecutive days of winning streak.

Bulls seemed unimpressed by stronger UK PMI

As investors looked past last week’s hawkish BoE decision to leave interest rates steady, the British pound was being weighed down by uncertainties about future talks with the EU and prospects for a second independence referendum in Scotland.

Meanwhile, the pair failed to gain any respite from an upward revision of the UK Manufacturing PMI print, coming in at 50.0 for January as against the preliminary estimate of 49.8, though did little to impress bullish traders.

Apart from domestic factors, the pair was further pressurized by a modest pickup in the US dollar demand, supported by a goodish rebound in the US Treasury bond yields ahead of the release of the US ISM Manufacturing PMI.

Technical levels to watch