British Pound Pulls Back to Mid-1.3400s as UK Manufacturing PMI Revised Lower

The British pound trimmed earlier gains on Monday, retreating from fresh seven-week highs above 1.3500 to hover in the 1.3450 area against the US dollar. The move came after the release of a downwardly revised UK Manufacturing PMI reading, which dampened the initial bullish momentum.

Earlier in the session, GBP/USD had climbed above the 1.35 handle for the first time since late July, extending a multi-day advance. However, the softer factory data prompted a swift pullback, with the pair settling back into the middle of the 1.34 range.

The revised PMI figures underscored lingering concerns about the health of the UK manufacturing sector, providing an excuse for traders to take profits on cable ahead of key US data later this week.