GBP/USD sidelined above 1.3200, focus on PMI

The Sterling is holding on to its daily gains vs. the greenback, with GBP/USD extending the overnight consolidative theme above the 1.3200 handle.

GBP/USD attention to PMI, BoE

Cable is struggling for direction in the middle of the week, although it manages well to keep the trade above the key 1.3200 mark ahead of the opening bell in the Old Continent.

After reaching fresh cycle highs near 1.3250 on Tuesday, the pair met some selling pressure, although decent contention seems to be placed around the 1.3200 neighbourhood for the time being.

Looking ahead, UK’s construction PMI is only due today ahead of tomorrow’s more relevant BoE meeting. In the US calendar, all eyes will be on the ADP report, with consensus pointing to a creation of 185K jobs during July.

GBP/USD levels to consider

As of writing the pair is losing 0.03% at 1.3203 and a break below 1.3097 (10-day sma) would open the door to 1.3089 (23.6% Fibo of 1.2587-1.3244) and finally 1.3029 (short-term support line). On the upside, the next hurdle is located at 1.3244 (2017 high Aug.1) followed by 1.3351 (high Sep.12 2016) and finally 1.3447 (high Sep.6 2016).

Additionally, the daily RSI (14) is navigating around 66 while the MACD remains within the positive territory.