GBP/USD retreats from post-UK PMI highs, 50-DMA now capping gains

   •  UK PMI-led up-move stalls amid a modest USD uptick.
   •  Brexit uncertainty holding investors back from placing aggressive bets.
   •  US ISM non-manufacturing PMI eyed for fresh impetus.

The GBP/USD pair extended its upbeat UK PMI-led steady up-move but was now seen struggling to breakthrough 50-day SMA immediate hurdle.

The pair caught some fresh bids and turned higher for the third consecutive session on Monday, touching an intraday high level of 1.3835 following the release of better-than-expected UK services PMI. 

Against the backdrop of recent concerns about a global trade war, which has been weighing on the US Dollar, today's UK data helped the pair to build on last week's recovery move from the 1.3700 neighborhood.

The up-move, however, seems lacking conviction and any strong follow-through traction as investors still seemed reluctant to place aggressive bets amid persistent uncertainty surrounding the Brexit negotiations. 

Later during the early NA session, the release of US ISM non-manufacturing PMI would influence the USD price dynamics and eventually provide some fresh impetus. 

From a technical perspective, a sustained move beyond the mentioned 50-day SMA, currently near the 1.3835-40 region, should trigger a fresh bout of short-covering bounce and pave the way for an extension of the up-move. 

Technical levels to watch

A follow-through retracement back below 1.3790-70 area might now turn the pair vulnerable to head back towards retesting the 1.3710-1.3700 zone before eventually dropping to 1.3660-55 support. 

On the upside, bulls would be eyeing for a breakthrough 50-day SMA barrier, currently near the 1.3835-40 region, above which the pair is likely to head back towards reclaiming the 1.3900 handle.