GBP/USD under pressure near 1.2900, PMI on sight

The Sterling is now losing further momentum, dragging GBP/USD to fresh daily lows in the vicinity of the 1.2900 region.

GBP/USD weaker ahead of PMI

The recent rally in Cable keeps giving signals of losing momentum, as the pair is down for the third straight session and shedding over a cent since Friday’s tops in the 1.3030 area.

Poor prints from earlier manufacturing and construction PMIs weighed on GBP during the first half of the week and have currently lifted the bar for a positive surprise at today’s key services gauge, expected at 53.5 for the month of June.

It is worth mentioning that spot advanced for eight consecutive sessions since mid-June lows in sub-1.2600 levels to recent tops beyond the psychological 1.3000 handle, all on the back of the unexpected shift to a more hawkish message from the Bank of England and USD-weakness.

Apart from UK’s services PMI today, investors will look to the FOMC minutes on the USD-side of the equation and the release of May’s factory orders in the US docket.

GBP/USD levels to consider

As of writing the pair is retreating 0.01% at 1.2916 facing the next support at 1.2869 (10-day sma) followed by 1.2813 (21-day sma) and finally 1.2587 (low Jun.21). On the upside, a breakout of 1.3032 (high Jun.30) would open the door to 1.3051 (2017 high May 18) and then 1.3125 (high Sep.22 2016).