GBP/USD: mounting bearish pressures - FXStreet

Valeria Bednarik, chief analyst at FXStreet exlained that the British Pound out-stood for its weakness, falling down to 1.3162 against the greenback after the release of the final UK Markit manufacturing PMI, worst than initially estimated.

Key Quotes:

"The manufacturing sector in the kingdom sunk at the beginning of the third quarter, coming in at 48.2 in July down from 52.4 in June, the lowest since February 2013. Adding to Sterling's bearish case is the upcoming Bank of England economic policy decision."

"Mostly, the market is expecting a 25bps rate cut to 0.25%, which at this point has been fully priced in. If Governor Carney announces a larger rate cut, or a large extension of the APP program, Pound's reaction could be more significant."

"The pair has struggled to regain the 1.3200 level for most of the day, having been unable to maintain gains on spikes beyond it, which suggests mounting bearish pressure."