GBP/USD breaking higher to test 1.3350 ahead of UK PMI

The GBP/USD pair bounced-off a brief dip below 1.33 handle in the Asian trades, and now extends the minor-recovery back towards 1.3350 – post-NFP levels.

GBP/USD: Focus remains on UK services PMI

Currently, GBP/USD trades +0.21% higher at 1.3321, hovering within a striking distance of daily highs scored at 1.3327 some minutes ago. Despite weak US payrolls numbers, the US dollar rallied on Friday in response to hawkish Fed speak and talking up of Sept Fed rate hike expectations by Goldman Sachs, which sent the GBP/USD pair more-than 50-pips lower from a knee-jerk uptick to 1.3352 levels.

However, the GBP/USD pair managed to regain lost footing and extends its ongoing bullish momentum this Monday, now heading for a retest of post-NFP highs amid fresh USD selling seen across the board. Moreover, markets favour the pound heading into the UK services PMI report, especially after both the manufacturing and construction sector activity showed solid growth.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3352 (post-NFP high), above which 1.3400 (round figure) would be tested. On the flip side, support is seen at 1.3273/63 (daily S3/ 5-DMA) below that at 1.3250 (Sept 2 low).