GBP/USD eyes key fibo support at 1.2430

Currently, GBP/USD is trading at 1.2474, down -0.60% on the day, having posted a daily high at 1.2557 and low at 1.2466.

GBP/USD has been hit hard today, starting overnight on the back of UK Markit manufacturing PMI for March that sent sterling traders offloading cable below the 1.25 handle. The data arrived in at 54.2 for a four-month low. This was vs. the prior 56.2 and missing expectations of 55.1. The ISM manufacturing in the US was positive although markit manufacturing PMI was missing expectations by 0.2%. The key events for the week will come in the form of the FOMC minutes and the nonfarm payrolls at the end of the week:

• FOMC Speak: March 14-15th FOMC minutes come this week - Nomura
• How will the US dollar perform this month?- BBH
• Nonfarm payrolls: increased by 175k in March? - Nomura

GBP/USD levels

To the downside, there is the major 1.2430 Fibonacci support and Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart supports additional declines, as the price is currently developing below its 20 SMA, whilst the Momentum indicator is crossing below the 100 level, and the RSI heading south around 46. "The upside should remain capped by selling interest around 1.2540/60 for the bearish trend to remain in place."