GBP/USD testing supply around 23.6% Fibo

GBP/USD is on the rise in Asia, testing supply around the key resistance at 1.3315, which is 23.6% Fibo retracement of the slide from Brexit day high of 1.5019 to post Brexit low of 1.2789.

Eyes UK services PMI data

The main event for Sterling traders is the UK services PMI release, which is likely to show the contraction the activity ended in July. The index is seen coming-in at 50.00 in Aug from July’s 47.4 figure.

The pair clocked high of 1.3352 on Friday post the dismal US data release, but surrendered gains to end the day at 1.3289. The bid tone gathered pace in Asian session largely due to the uptick in the GBP/JPY cross.

It remains to be seen if the spot breached 1.3315 (23.6% Fibo) on the daily closing basis. The level has acted as a strong support since mid July.

GBP/USD Technical Levels

Acceptance above 1.3315 (23.6% Fibo) would open doors for 1.3371 (Aug 3 high). Further gains could run into hurdle at 1.3480 (July 15 high). On the other hand, a breakdown of Asian session low of 1.3289 would shift risk in favor of a drop to 1.3252 (Friday’s low) and 1.3216 (5-DMA).