GBP/USD: Further downside in play ahead of UK services PMI?

The GBP/USD pair consolidated the US capitulation in Asia, as the bears await the UK services PMI data for a break below 1.29 handle.

GBP/USD: Thursday’s low of 1.2851 on sight

The spot is seen moving back and forth in a 15-pips narrow range, now making another attempt to take-out stiff resistances located near 1.2935 region amid fresh USD selling seen across the board.

UK construction PMI surprises negatively in Aug, at yearly lows

However, yesterday’s horrid UK construction PMI figures could keep any upmove short-lived, while intensifying risk-off sentiment amid the latest North Korea headlines could also have a negative bearing on the higher-yielding pound.

N. Korea spotted moving ICBM-grade rocket towards west coast

Further, Cable also remains vulnerable to more downside risks amid expectations of deterioration in the UK’s services sector activity in the month of August and looming concerns over the Brexit divorce bill.

Apart from the UK services PMI release, focus also remains on the US factory orders and Fedspeaks for fresh impetus on the pair.

GBP/USD levels to consider             

Valeria Bednarik, Chief Analyst at FXStreet, explained: “In the 4 hours chart, the price is extending below its 20 SMA and 200 EMA, both anyway flat and converging within a tight range, a clear sign of absent trend whilst technical indicators turned lower, and particularly the RSI already entered negative territory, anticipating another decline ahead, on a break below 1.2890 the 23.6% retracement of the mentioned decline and the immediate support. Support levels: 1.2890 1.2850 1.12810 Resistance levels: 1.2965 1.2995 1.3030.”