GBP/USD under pressure near 1.2870, PMI eyed

The Sterling came under renewed selling pressure at the beginning of the week, dragging GBP/USD back below the 1.290 handle.

GBP/USD attention to PMI

Cable left the area of Friday’s tops just beyond the key barrier at 1.2900 the figure, as another terrorist attack hit the UK over the weekend, hurting the sentiment around the British Pound.

Adding to the downside, the greenback seems to have recovered the smile after the disappointing payrolls released last Friday (138K). The US Dollar Index is gathering some traction and extending the bounce off recent 2017 lows, always backed by firm expectations of a Fed’s move later in the month.

Data wise in the UK docket, the main publication will be Markit’s Services PMI, with market consensus expecting the reading to come in a tad lower during May.

Across the pond, the ISM non-manufacturing and factory orders will take centre stage later in the session.

GBP/USD levels to consider

As of writing the pair is losing 0.16% at 1.2866 facing the immediate support at 1.2770 (low May 31) followed by 1.2758 (low Apr.21) and then 1.2748 (55-day sma). On the flip side, a breakout of 1.2915 (20-day sma) would aim for 1.2921 (high May 31) and finally 1.2949 (high May 26).