GBP/USD heavy around 1.3250, UK services PMI in focus

The GBP/USD pair is seen consolidating in a flat-line around 1.3250 levels in early Europe, as the bears take a breather after the overnight retreat from near 1.33 handle.

GBP/USD: Risk-off, poor PMIs weigh

Currently, GBP/USD drops -0.29% to 1.3249, flirting with session lows posted at 1.3244 some minutes ago. The GBP/USD pair remains heavily offered as poor risk sentiment combined with horrid UK construction PMI report keeps the pound under pressure.

The Markit/CIPS Construction PMI index fell to 46.0 in June, down from 51.2 seen in May, hitting the lowest since 2009. Markets had predicted a drop to 50.7 in June.

Additionally, extended gains in the US dollar against its major peers also weighs down on the cable ahead of the UK services PMI data due for release later today. The UK services PMI is expected to tick lower to 53.1 in June versus 53.5 booked previously.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3276/87 (5-DMA/ daily pivot), above which 1.3350 (psychological levels/ 10-DMA) would be tested. On the flip side, support is seen at 1.3202 (Jun 30 low) below that at 1.3118 (Multi-year low).