The Pound drops below the 1.28 mark as U.K's month on month GDP falls short of expectations printing at 0.1% relative to the expected 0.2%. Additionally, U.K's manufacturing sector officially hit recessionary levels after recording its second consecutive quarter of negative growth. With this set of disappointing economic data, things don't look well for the British economy given that there is also a major risk of a “no-deal” Brexit.
With the negative sentiment surrounding the Pound, the pair broke below the 1.27891 support level clearing the way for a drop towards the 1.618 Fibonacci extension which coincides with a key support level at 1.27066. Adding to the bearish momentum, the pair is trading far below the 50-period moving average and the 200-period moving average.
Support: 1.27066 1.26511
Resistance: 1.27891 1.28386