GBP / USD plunges under 1.3000 due to poor data, Brexit and a stronger USD

GBP / USD plummets below 1.3000, the lowest in two weeks. It reached 1.2962 at the time of writing. The move continues.

There are three reasons for the fall:

1. Three indices of weak purchasing managers indicating a stagnant economy. The most recent one concerned the most important sector: services. The PMI services index stood at 50.1 for January, which shows no growth.

2. Worries that Brexit is not going anywhere, because May's address to hard-Brexiteers. British Prime Minister Theresa May is in Northern Ireland ahead of a meeting with European Commission President Jean-Claude Juncker on Thursday. The Irish backstop is still not solved.

3. An ongoing recovery of the USD, nearly a week after the Fed's decision. The greenback is also gaining ground against the euro. However, the pound is also losing ground against the euro.

Here's what it looks like on the graph. The pound / dollar has support at 1.2940 and only at 1.2855. The resistance is at 1.3050 and 1.3105.