GBPUSD drops below 1.25 after PMI miss

British pound has been performing relatively well in the early hours of European morning trade. However, the situation took a U-turn following the release of flash PMI indices from the UK at 9:30 am BST. While the manufacturing index came in at 54.6 and missed expectations of 55.0 just slightly, miss in services was significant. Services index dropped from 58.9 to 51.8 while market expected reading of 57.0. This has triggered a big slump in British pound which is now the worst performing G10 currency on the day. GBPUSD dropped around 0.9% since release and broke back below the 1.25 mark.

GBPUSD plunged following the PMI release. The pair dropped below 1.25 support and is testing an upward trendline. Source: xStation5

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