GBPUSD ON THE DEFENSIVE AHEAD OF MANUFACTURING DATA

The British pound has dropped towards key support against the US dollar after buyers failed to hold onto the psychological 1.3000 level on Friday. Negative MACD divergence on the daily time frame and reports of a possible leadership challenge to British PM Theresa May are weighing on the GBPUSD pairs intraday sentiment. Sterling traders now await the release of the United Kingdom Manufacturing PMI for the month of August.

The GBPUSD pair is only intraday bullish while trading above the 1.2930 level, key resistance is found at the 1.2950 and 1.3000 levels.

If the GBPUSD pair moves below the 1.2930 level, sellers may test towards the 1.2900 and 1.2850 support levels.