GBP/USD drops further on PMI, near 1.2900

GBP/USD has come under renewed pressure following the downbeat results from the UK’s services PMI, currently putting the key 1.2900 support to the test.

GBP/USD offered on data

GBP met further selling pressure after UK’s services PMI came in at 53.4 for the month of June, missing initial estimates and down from May’s 53.8.

Today’s data fell in line with lackluster readings from manufacturing and construction PMIs seen earlier in the week, all adding to the weekly correction lower in spot.

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.

Later in the NA session, the FOMC will publish its minutes of the June meeting, where the Fed raised its Fed Funds target range to 1.00%-1.25%.

GBP/USD levels to consider

As of writing the pair is retreating 0.08% at 1.2907 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).