GBP/USD trims gains to 1.3300 handle ahead of UK services PMI

Having posted a session high at 1.3328, the GBP/USD pair failed to build on to its gains beyond 23.6% Fibonacci retracement level of Brexit-led sharp slide and has now trimmed majority of its gains to currently trade around 1.3300 handle. 

Friday's dismal headline NFP print failed to boost the pair beyond 1.3350 resistance and extend its better-than-expected UK PMI-led strong gains to 4-week highs. The mildly disappointing NFP did little to change the odds of an eventual Fed rate-hike action this year and has limited any sharp slide for the greenback, restricting further upside for the GBP/USD major. 

Next in focus would be the release of UK services PMI for the month of August, which if again surprises on the upside should lift the pair through multi-week highs resistance near 1.3350 region. Following a sharp rebound in manufacturing and construction activity, the UK services sector is also anticipated to recover with the services PMI expected to come-in at 50.00 mark separating contraction and expansion territory. 

Technical levels to watch

On a sustained weakness below 1.3300 handle, the pair seems to head back towards 1.3250 intermediate support, which if broken is likely to continue drifting the pair towards 1.3200 round figure mark support. On the flip side, 1.3350 remains immediate hurdle, which if conquered has the potential to lift the pair beyond 1.3400 handle towards testing 1.3420-30 resistance.