GBP/USD drops further to 1.4040 on UK PMI

• Cable tumbles to the 1.4040 region post-PMI, fresh session lows.
• The pair is posting daily losses after four consecutive advances.
• Key UK Services PMI disappointed expectations at 51.7 in March.

The Sterling saw its selling pressure accelerate on Thursday following the release of March’s Services PMI, dragging GBP/USD to fresh daily lows in the 1.4040 region.

GBP/USD weaker on data

Cable is losing further momentum today after UK’s Services PMI came in below initial forecasts at 51.7 for the month of March and lower than February’s 54.5 reading.

After four sessions in a row posting gains, the pair has now faced some selling pressure while gains appear so far limited in the 1.4100 neighbourhood, always amidst a persistent risk-on context and a stronger greenback.

Looking ahead, US Initial Claims and February’s Trade Balance figures will be the salient events in the US docket, ahead of tomorrow’s more relevant Non-farm Payrolls.

GBP/USD levels to consider

As of writing, the pair is losing 0.28% at 1.4041 and a break below 1.4024 (21-day sma) would expose 1.4009 (low Mar.3) and then 1.3886 (low Mar.16). On the other hand, the next hurdle emerges at 1.4097 (high Apr.4) seconded by 1.4246 (high Mar.26) and finally 1.4280 (high Feb.2).