Investing.com - The pound dropped to three-month lows against the U.S. dollar on Monday, as the release of upbeat U.K. manufacturing activity data failed to reassure investors over the strength of the economy following the Brexit vote.
GBP/USD hit 1.2846 during European morning trade, the pair’s lowest since July 6; the pair subsequently consolidated at -, declining -%.
Cable was likely to find support at 1.2796, the low of July 6 and resistance at 1.3022, Friday’s high.
Research group Markit said its U.K. manufacturing purchasing managers’ index jumped to 55.4 last month from a reading of 53.3 in August. That was its highest level since 2014.
Analysts had expected the index to drop to 52.1 in August.
But investors remained cautious after U.K. Prime Minister Theresa May said on Sunday that she would trigger the process of leaving the European Union by the end of March.
Speaking at the Conservative party's annual conference in Birmingham, May said it was time to "get on with the job".
Triggering Article 50 of the EU's Lisbon Treaty will give Britain a two-year period to clinch one of the most complex deals in Europe since World War Two, and will redefine the country's ties with its biggest trading partner.
Sterling was also lower against the euro, with EUR/GBP advancing 0.76% to 0.8725.