GBP/USD: 100-DMA caps recovery ahead of UK services PMI

After witnessing a volatile Asian session this Monday, the GBP/USD pair is seen trading with moderate losses just below 1.27 handle, with markets awaiting UK Supreme Court hearing and services PMI report for fresh incentives.

GBP/USD test daily R1

The recovery in cable loses steam just ahead of 100-DMA at 1.2725, as renewed Brexit-concerns creep into the markets ahead of today’s UK Supreme Court hearing, where the UK PM May’s appeal will be heard, as her government challenges high court ruling on the triggering of Article 50.

Moreover, the pound remains under pressure amid expectations of a weaker U services PMI report and also as markets price-in a negative risk-sentiment on the European markets, in wake of a No vote win in the Italian election yesterday.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2725 (100-DMA), 1.2747 (Dec 2 high) and 1.2772 (Oct 5 high). While supports are seen at 1.2638/33 (5-DMA/ daily S1) and 1.2600 (round figure) and below that at 1.2550 (10-DMA).