GBP/USD surrenders daily gains, slides back closer to multi-month lows

   •  GBP continues to be weighed down by today’s disappointing UK PMI.
   •  A modest USD rebound adds to the downward pressure during early NA session.
   •  Bears might now eye a move towards 200-DMA ahead of Friday’s US NFP report.

The GBP/USD pair finally broke down of its post-UK data consolidation phase and is currently placed at the lower end of its daily trading range.

The pair stalled its modest recovery attempt during the early European session and met with some fresh supply near the 1.3630 level following the disappointing release of the UK services PMI for April, which missed consensus estimates for the third time in the previous four months. 

Adding to this, a modest US Dollar rebound since the early NA session, despite weaker than expected US ISM non-manufacturing PMI further collaborated to the pair's retracement slide back closer to over 3-1/2 month lows. 

The downfall could also be attributed to some cross-driven weakness stemming out of the ongoing slump in the GBP/JPY cross, which has now fallen to its lowest level since late March. 

It would be interesting to see if bears are able to maintain their dominant position and drag the pair further towards/below the very important 200-day SMA as investors now look forward to Friday's keenly watched US NFP report for some fresh impetus ahead of next week's BoE Super Thursday.

Technical outlook

“The pair may find a more accessible path to the downside. A significant cluster of support awaits at $1.3530, the congestion of the Bolinger Band one-hour Lower, the Pivot Point one-day S1, and the Pivot Point one-month S1,” writes Yohay Elam, Analyst at Forex Crunch.

He further adds: “If the pair does enjoy a meaningful recovery, the $1.3750 level is a confluence of potent levels: the one-month low, the one-week low, the Pivot Point one-day R3, and the Fibonacci 161.8% one-day.