GBP/USD breaks below 1.3700 on weak PMI

• Cable comes under further downside pressure in sub-1.37 levels.
• UK’s Manufacturing PMI came in below estimates at 53.9.
• Other UK data releases came in on the softer side today.

The selling pressure around the Sterling is picking up extra pace today, dragging GBP/USD to test fresh lows in the vicinity of the 1.3700 key support.

GBP/USD weaker post-data, targets 1.3658

Cable is gathering extra downside traction on Tuesday after UK’s manufacturing PMI came in below expectations in March at 53.9.

In addition, further data releases in the UK showed BoE’s Consumer Credit, M4 Money Supply, Mortgage Approvals and Net Lending to Individuals all missing forecasts and thus adding to the selling mood around the British Pound.

Weaker-than-expected results today are adding to the view that a May rate hike by the Bank of England is now highly unlikely and is in turn accelerating the move lower in GBP, which now faces the next relevant target at 1.3658, 2017 top.

GBP/USD levels to consider

As of writing, the pair is down 0.54% at 1.3689 and a break below 1.3658 (2017 high Sep.20) would open the door to 1.3457 (2018 low Jan.11) and finally 1.3302 (low Dec.15 2017). On the upside, the next hurdle emerges at 1.3931 (10-day sma) seconded by 1.3965 (low Apr.5) and finally 1.4053 (21-day sma).