GBP/USD moves to a low of 1.3066, EUR/GBP rises to a high of 0.8775
It's troubling times for the pound as not only did the manufacturing PMI print earlier disappointed, it should have been much weaker if not for record stockpiling due to Brexit uncertainty.
Cable is now slipping to a low of 1.3066 on the day and is nearing a test of support near 1.3060-62 before bids around 1.3050 will come into play. At the same time, weakness in sterling is also helping to lift the euro with EUR/GBP rising to 0.8775 currently.
Sure, this is just the manufacturing reading and the UK economy relies on the services sector more but the reaction here is more about sentiment. With Markit highlighting concerns such that there is a "real risk of a manufacturing sector recession", it's not the kind of words that traders/investors would like to hear.
For now, a breach below the 200-hour MA (blue line) in cable will see sellers take control but I would expect the area around 1.3050-60 to at least hold a drop ahead of the US payrolls data later. However, if that breaks, it's a slippery slope towards 1.3000 with minor support seen around 1.3025-30 and the 200-day MA @ 1.3039 just before that.