GBP/USD consolidates the Asian recovery near 1.3260, UK PMI eyed

Having peaked at 1.3275 in Asia, the GBP/USD pair extends its consolidative mode into Europe, as the bulls await the UK services PMI release for fresh impetus.

GBP/USD looks to regain 1.3300

The spot is seen defending the bid tone so far this Wednesday, having paused a three-day sell-off to three-week lows of 1.3223, as the GBP bulls eagerly await a positive surprise from the UK services PMI numbers, especially in the wake of downbeat construction and manufacturing PMI reports.

Moreover, Cable was also offered some respite on the back of a broad based drop in the greenback and US rates, as markets ponder Trump’s choice for the Fed Chief, once Yellen’s term expires next year. The USD index now meanders near 2-day lows of 93.16, down -0.19% on the day.

However, further upside appears to lack follow-through amid increased nervousness ahead of the US jobs report and Fed Chair Yellen’s speech due later in the NA session.

GBP/USD levels to consider             

According to Haresh Menghani, Analyst at FXStreet, “any up-move beyond 1.3280-85 level could lift the pair back above the 1.3300 handle but seems more likely to meet heavy supply at 38.2% Fibonacci retracement level resistance near 1.3320 level. On the flip side, 50% Fibonacci retracement level, near the 1.3215-10 region, remains immediate support to defend, which if broken is likely to accelerate the fall towards 50-day SMA near the 1.3135 region en-route 61.8% Fibonacci retracement level support in the 1.3100 neighborhood.”