GBP/USD: Upside stalls near 1.3250 post-UK PMI, eyes on ADP

The GBP/USD pair failed to sustain at multi-month tops of 1.3245 levels, and now hovers near 1.3230 levels, as markets digest the latest downbeat UK construction PMI release, which hit the lowest levels since August 2016.

UK construction PMI hits 11-month lows in July, a big miss on expectations

The bulls take breather and consolidate the latest leg higher ahead of the US ADP jobs data, which will offer fresh direction to the major. Markets expect the US private sector jobs to rise by 187k in July versus a fall of 158k reported last.

US: Light data calendar Wednesday, focus on ADP - BNPP

Further upside in the GBP/USD pair also remains capped amid a tepid-bounce staged by the US dollar against its major peers, as markets look to take profits off the table on their USD shorts. The USD index plunged to near fifteen-month lows of 93.64 on the back of the US political jitters and weak US fundamentals.  

GBP/USD levels to consider             

At 1.3230, the pair is poised to test 1.3250 (psychological levels & Sep 16 high) and 1.3345 (Sep 12 high). On the downside, supports could be seen at 1.3196/92 (Aug 1 & daily low), 1.3168 (classic S2 & Fib S3) and 1.3125 (Jul 26 high).