UK PMI Preview: what to expect of GBP/USD

UK’s Manufacturing PMI is due later, with market consensus expecting an improvement to 49.0 for the month of August, looking to revert July’s drop to 48.2.

The indicator has come under renewed scrutiny as of late, as market participants remain wary of the potential slowdown of the UK manufacturing activity following the recent decision by the UK to leave the European Union.

Regarding FX, Cable’s upside remain capped by the resistance trendline off 1.3481 (July’s top), today near 1.3200 the figure, ahead of the retracement of the post-Brexit drop in the 1.3320 area. Support, on the other hand, remains in the mid-1.3000s ahead of August’s low in the 1.2860 region.