Investing.com - The pound slumped against the dollar on Tuesday after a U.K. manufacturing gauge missed expectations, offsetting a disappointing factory gauge in the U.S.
In U.S. trading on Tuesday, GBP/USD was trading at 1.6644, down 0.12%, up from a session low of 1.6619 and off a high of 1.6675.
Cable was likely to find support at 1.6466, the low from March 24, and resistance at 1.6684, Monday's high.
The pound took a hit against the dollar earlier after data showed that the pace of the recovery in the U.K. manufacturing sector slowed unexpectedly in March.
The Markit U.K. manufacturing purchasing managers’ index fell to an eight-month low of 55.3 last month from a downwardly revised 56.2 in February. Analysts had expected the manufacturing index to tick up to 56.7.
While short of expectations, the index came in over 50, which signifies expansion, and the sector continues to drive job creation, which cushioned losses.
Meanwhile in the U.S., the Institute for Supply Management reported that its manufacturing purchasing managers' index rose to 53.7 in March from 53.2 in February, missing market expectations for a 54.0 reading.
The report showed that employment growth slowed, with the employment index falling to 51.1 from 52.3, the lowest level since June 2013, which watered down the dollar's gains against the pound.
Elsewhere, sterling was down against the euro, with EUR/GBP up 0.35% at 0.8293, and up against the yen, with GBP/JPY up 0.12% at 172.22.
On Wednesday, the U.K. is to produce private sector data on house price inflation, as well as official data on construction activity.
The U.S. is to release the ADP report on private sector job creation, which leads the government’s nonfarm payrolls report by two days. The U.S. is also to release data on factory orders.