Manufacturing activity in the United Kingdom rose slightly to 48.3, beating estimates of 47.4. In August, manufacturing activity fell to 47.4.
A reading below 50 indicates a contraction in the index. The UK’s manufacturing sector has been trending below 50 since May this year. The data for September puts the manufacturing activity at a four-month high.
GBP/USD Extends Declines
The currency pair failed to capitalize on the manufacturing PMI report and closed weaker. Price action remains trading below the support level of 1.2291. Therefore, any rebound in the short term could see price retesting this level for resistance. The overall bias remains towards 1.2082, unless GBPUSD closes above 1.2291.
