GBP/USD finds support near 1.2850 post-PMI

The daily decline in the Bristish pound seems to have found some respite in the 1.2850/40 band, with GBP/USD now looking to regain the 1.2870/75 band.

GBP/USD (kind of) bid after PMI

Today’s sharp retracement in the pair has found decent support in the 1.2850/40 band after the UK’s Manufacturing PMI has come in above expectations at 55.4 for the month of September vs. 52.1 forecasted and August’s 53.3.

Anyway, GBP remains on the defensive and well into the red territory following comments by PM T.May over the weekend, who suggested that Article 50 could be triggered by end of March, regurgitating ‘Brexit’ fears

Further comments by Chancellor P.Hammond earlier today stated the UK is entering the Brexit process in an extremely solid economic condition.

According to the latest CFTC report, speculative GBP net shorts have climbed to 3-week highs along with multi-week tops in Open Interest, all during the week ended on September 27.

GBP/USD levels to consider

As of writing the pair is retreating 0.79% at 1.2876 facing the next support at 1.2843 (low Oct.3) ahead of 1.2796 (2016 low Jul.6). On the other hand, a breakout of 1.3089 (20-day sma) would aim for 1.3125 (high Sep.22) and finally 1.3274 (high Aug.24).