- Cable remains on the defensive around 1.3280 post-UK PMI.
- UK’s manufacturing PMI came in above estimates in May.
- Later in the session, US Non-farm Payrolls will grab all the attention.
The Sterling remains on a soft note at the end of the week, taking GBP/USD to the 1.3280 region despite the upbeat print from the manufacturing PMI.
GBP/USD offered ahead of Payrolls
Cable is extending the choppy trade so far on Friday, navigating below the 1.3300 handle despite UK’s manufacturing PMI surprised to the upside in May, coming in at 54.4 vs. 53.5 forecasted and up from April’s 53.9.
In the meantime, the pair remains well underpinned by recent multi-month lows in the 1.3200 neighbourhood, with USD-dynamics as the exclusive driver of the sentiment around the pair.
However, it is expected that the Brexit negotiations, uncertainty in the UK government and the prospects of tightening by the Bank of England come to the fore as drivers in the next months.
GBP/USD levels to consider
As of writing, the pair is losing 0.09% at 1.3287 facing initial contention at 1.3205 (2018 low May 23) seconded by 1.3039 (low Nov.3 2017) and finally 1.3027 (low Oct.6 2017). On the upside, a break above 1.3334 (10-day sma) would open the door to 1.3348 (high May 31) and then 1.3434 (21-day sma).
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