GBP/USD: Steady decline stalls near 1.3310, UK PMI eyed

The GBP/USD pair stalled its retreat from three-week highs as we head into Europe, with the bulls finding some support ahead of 1.33 handle amid poor risk environment and a better bid US dollar against its major rivals.

GBP/USD sold-off near 1.3360

Currently, GBP/USD trades -0.22% lower at 1.3327, retracing from session lows struck at 1.3314 some minutes ago. The cable extends the gradual descent from near 1.3360 region and looks to test 1.33 barrier as sentiment towards higher-yielding currencies such as the GBP remains poor, in response to steep losses in the Asian equities.

Moreover, a minor-relief rally seen in the US dollar versus most of its major peers, also adds to the downside bias in the GBP/USD pair. Further, the major remains under pressure on the back of expectations of a muted UK services PMI report due later in the European session.

Meanwhile, the major will closely track the broader markets sentiment ahead of the US ADP and ISM non-manufacturing PMI data due later today.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3365 (3-week highs), above which 1.3400 (round number) would be tested. On the flip side, support is seen at 1.3305 (Jul 29 high) below that at 1.3262 (5-DMA).