Investing.com - The pound moved lower against the U.S. dollar on Friday, after the release of downbeat economic reports from the U.K. added to concerns over the outlook for Britain’s growth following the country’s decision to leave the European Union.
GBP/USD hit 1.3173 during European morning trade, the session low; the pair subsequently consolidated at 1.3175, sliding 0.42%.
Cable was likely to find support at 1.3061, the low of July 20 and resistance at 1.3313, the high of July 18.
Research group Markit said its flash U.K. manufacturing purchasing managers’ index fell to 49.1 in July from a reading of 52.1 in June. Economists had expected the index to fall to 47.8 this month.
Meanwhile, the U.K. services PMI dropped to 47.4 in July from a reading of 52.3 in June, compared to expectations for a decline to 48.9.
The data added to fears over a slowdown in U.K. growth as investors continue to asses the economic effects of the Brexit vote.
Meanwhile, the dollar remained supported after positive U.S. data on Thursday boosted optimism over the strength of the economy.
Data showed that U.S. existing home sales increased unexpectedly by 1.1% in June to 5.57 million units, while a separate report showed that U.S. jobless claims fell unexpectedly by 1,000 to 253,000 last week.
Sterling was also lower against the euro, with EUR/GBP gaining 0.42% to 0.8369.
Earlier Friday, Markit said its Flash Euro Zone Composite PMI, which measures the combined output of both the manufacturing and service sectors dipped from 53.1 in June to 52.9 in July, above forecasts for 52.5.
Markets were still digesting the European Central Bank’s decision on Thursday to leave monetary policy on hold.
At his monthly press conference, ECB President Mario Draghi said European markets weathered the post-Brexit volatility with “encouraging resilience”, but reiterated that the central bank is ready to act by using all the instruments available under its mandate if necessary.