The GBPUSD currency pair is experiencing a decline in value at a rate of 1.27150 due to negative UK PMI data.

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• GBP/USD trades lower on the back of downbeat UK PMI data.

The pair currently trades last at 1.27150.

The previous day high was 1.2765 while the previous day low was 1.2615. The daily 38.2% Fib levels comes at 1.2672, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2708, expected to provide support.

GBP/USD extends its losses and trades lower around 1.2710 during the Asian session on Thursday. The pair faces downward pressure due to downbeat preliminary PMI data released from the United Kingdom (UK) on Wednesday, which came in below expectations. The preliminary S&P Global/CIPS Composite PMI (Aug) reported a decline of 47.9 from the previous reporting of 50.8, weaker than the expectation of 50.3. The index fell below 50 for the first time since January.

However, US PMIs also fell short of the market consensus, which helped the GBP/USD pair in trimming the losses on the previous day. Additionally, the US Treasury yields fell sharply on weaker US economic data, exerting downward pressure on the Greenback.

As said, S&P Global Manufacturing PMI in August declined to the reading of 47, weaker than the market consensus of 49.3, from 49 prior. The S&P Global Services PMI for August dropped to 51 from the prior 52.3, falling short of the expected 52.2.

Weaker PMI data from both countries has signaled weaker economic activities, raising the market expectations of less likelihood of interest rate hikes in September meetings by the central banks. This put the market participants into cautious status, seeking further cues on the economic outlook and inflation scenarios.

The US Dollar Index (DXY), which measures the performance of the US Dollar (DXY) against the six major currencies, hovers around 103.40 at the time of writing. Investors turn cautious ahead of the upcoming Jackson Hole annual symposium, where Fed Chair Jerome Powell will deliver a speech on Friday.

Traders will likely monitor Initial Jobless Claims from the United States (US) scheduled to be released later in the day. On the UK docket, GfK Consumer Confidence for August is due to be released on Friday. These datasets might offer valuable perspectives about the economic condition of both countries, providing fresh cues for GBP/USD traders.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2706 at the time of writing. Pair opened at 1.2726 and is trading with a change of -0.16 % .

The pair is trading below its 20 Daily moving average @ 1.2743, below its 50 Daily moving average @ 1.2796 , above its 100 Daily moving average @ 1.2637 and above its 200 Daily moving average @ 1.2392

The previous day high was 1.2765 while the previous day low was 1.2615. The daily 38.2% Fib levels comes at 1.2672, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2708, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2639, 1.2552, 1.2489
• Pivot resistance is noted at 1.2789, 1.2852, 1.2939

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