GBP/USD stays in red post-PMI, around 1.2920

GBP/USD has briefly tested the 1.2910 area, or session lows, after UK’s services PMI missed initial estimates in August.

GBP/USD offered on data

Cable has given away its initial gains today after services PMI came in a tad below expectations at 53.2 for the month of August and lower than July’s 53.8 results.

Spot came under renewed selling pressure as well from the USD-side, where the US Dollar Index is hovering over the 92.60/65 band, or daily highs, backed by a rebound in yields of the key US 10-year benchmark.

In the US docket, July’s factory orders are due along with speeches by FOMC’s L.Brainard (permanent voter, dovish), Dallas Fed R.Kaplan (voter, hawkish) and Minneapolis Fed N.Kashkari (voter, dovish).

GBP/USD levels to consider

As of writing the pair is losing 0.05% at 1.2923 and a break below 1.2900 (10-day sma) would aim for 1.2851 (low Aug.31) and finally 1.2771 (low Aug.4). On the other hand, the initial hurdle lines up at 1.2952 (55-day sma) followed by 1.2996 (high Sep.1) and then 1.3031 (high Aug.11).