GBP/USD fails near 1.28, skids back to fresh 3-decade lows

The sellers are back in control after the bulls failed to take on the recovery post-PMI above 1.28 handle, now pushing GBP/USD closer towards 1.2700 levels.

GBP/USD: Sell the bounce?

A stronger UK construction PMI report inspired minor-recovery in the cable lost steam jusy shy of 1.28 handle, providing an excuse to the GBP traders to take advantage of the bounce as a fresh selling opportunity. At the time of writing, GBP/USD hovers near fresh 31-year lows struck at 1.2740 few minutes ago, recording a -0.70% loss on the day.

The sell-off in the pound across the board was triggered by Sunday’s comments by the UK PM May, after she set the timeline for the commencement of the Brexit-process, which flared up Brexit-related anxiety once again.

On the data-front, the UK Markit/CIPS Construction PMI jumped to 52.3 in Sept vs 49.0 expectations. All eyes now remain on the US employment report due in the second half of this week for fresh moves in the major.

GBP/USD Levels to consider            

The pair has an immediate resistance at 1.2800 (key support-turned resistance), above which at 1.2850 (psychological levels) and next at 1.2900 (round number). The next key support is seen at 1.2700 (1985 levels)