⚡ British Pound eases to 1.3450 area following downwardly revised Manufacturing PMI data

The British Pound surrendered earlier gains against the US Dollar on Monday, retreating to the 1.3450 level after reaching seven-week highs above 1.3500 in morning trading. The pullback came after downwardly revised UK Manufacturing PMI data dampened sentiment around sterling, with GBP/USD now trading back in the mid-1.3400 range.

The revised manufacturing figures raised fresh concerns about the UK’s economic momentum, prompting traders to unwind bullish sterling positions established earlier in the session. The sharp intraday reversal highlights continued volatility in cable as markets digest mixed signals from Britain’s economic data releases.

Currency traders and forex brokers are now reassessing their GBP exposure as the pair consolidates within Monday’s wide trading range. The downward revision adds to uncertainty surrounding the Bank of England’s policy path and could pressure sterling further if additional economic indicators disappoint.

FXnCO Insight

Traders should watch for potential further downside in GBP/USD toward 1.3400 support, with stop-losses above 1.3500 vulnerable to being triggered if manufacturing weakness persists in subsequent UK data releases.

Source: FXStreet