GBP/USD rejected at 1.2950, eyes 1.2900 ahead of UK services PMI

Amid persisting risk-off market profile, the GBP/USD extends its retreat from near 1.2950 levels, with the bulls turning cautious ahead of the UK services PMI release.

GBP/USD: Focus shifts to UK services PMI

The GBP/USD pair has reversed more-than half of the Asian recovery, as we head towards the European opening bells, now pushing the rate closer towards 1.29 handle.

The spot faces double whammy amid widespread risk-aversion, as tensions over North Korea missile launch mount, curbing demand for risk currencies such as the GBP. Meanwhile, expectations of downbeat UK services PMI reading for June adds to the renewed weakness seen in cable.  

A negative UK services PMI report wouldn’t surprise markets, after the recent poor manufacturing and construction PMI readings, as the services PMI has widely shown the similar behaviour as the manufacturing and construction PMIs.

UK manufacturing PMI hits 3-month lows in June, a big miss on expectations

UK construction PMI stalls rebound in June, misses expectations

However, the main risk event for the major today is expected to be the FOMC minutes, which may set the direction on the greenback for the coming days, eventually impacting GBP/USD.

GBP/USD levels to consider             

To the upside, the immediate resistance is the 1.2948 (daily tops) followed 1.2968 (5-DMA) and then 1.3030 (5-week tops). On the downside, support could be located at 1.2905/00 (10-DMA/ round number), 1.2864 (50-DMA) and 1.2815 (20-DMA).