GBP/USD drops further to 1.3120

The selling pressure has now intensified around the British pound, relegating GBP/USD to trade in fresh 2-day lows near 1.3120.

GBP/USD weaker on PMI

Spot remains on the defensive on Friday, trading back to the 1.3120 area in response to the miserable prints from UK’s Services PMI for the current month and shedding at the same time more than a cent since daily highs near 1.3290.

Additionally, new UK’s Finance Minister Philip Hammond said the Bank of England remains ready to use all necessary tools to respond to market turbulence in the near term.

GBP/USD levels to consider

As of writing the pair is losing 0.79% at 1.3127 and a break below 1.3061 (low Jul.20) would aim for 1.2849 (low Jul.11) and then 1.2796 (2016 low Jun.24). On the flip side, the next hurdle aligns at 1.3287 (high Jul.22) followed by 1.3321 (23.6% Fibo of 1.5020-1.2796) and finally 1.3481 (high Jul.15).