GBP/USD still weak on UK PMI, around 1.2860

The Sterling faded the initial up tick in the wake of the release of UK’s Construction PMI, with GBP/USD moving to daily lows around the 1.2860 area.

GBP/USD now looks to US data

Cable stays on the defensive so far today despite UK’s construction PMI surprised to the upside, coming in at 56.0 during last month, beating forecasts and up from April’s 53.1.

In the meantime, the pair is reverting a positive 4-session streak amidst a steady greenback, while a declining gap between Conservatives and Labour in the run up to the UK general election on June 8 keep weighing on the Sterling.

Data wise across the pond, US non farm payrolls are seen at 185K for the month of May and the unemployment rate is expected to stay put at 4.4%.

GBP/USD levels to consider

As of writing the pair is losing 0.16% at 1.2862 facing the immediate support at 1.2770 (low May 31) followed by 1.2758 (low Apr.21) and then 1.2738 (55-day sma). On the flip side, a breakout of 1.2918 (20-day sma) would aim for 1.2921 (high May 31) and finally 1.2949 (high May 26).