GBP/USD off highs post-PMI, near 1.2870

The British pound eased some pips from daily tops vs. the greenback on Monday, with GBP/USD now hovering over the 1.2870 region.

GBP/USD within range on PMI

The pair kept the composure after UK’s services PMI tracked by Markit came in below estimates for the month of May at 53.8 vs. 55.0 forecasted and April’s 55.8.

Cable stays under pressure today, so far reverting five consecutive daily advances with gains clearly capped in the low-1.2900s for the time being.

Additionally, the recent attacks in London continue to weigh on GBP sentiment, adding to already nervousness in light of the upcoming general elections on June 8. Latest election polls showed Conservatives still leading the vote intention vs. Labour, albeit by a narrow gap.

GBP/USD levels to consider

As of writing the pair is losing 0.09% at 1.2875 facing the immediate support at 1.2770 (low May 31) followed by 1.2758 (low Apr.21) and then 1.2748 (55-day sma). On the flip side, a breakout of 1.2915 (20-day sma) would aim for 1.2921 (high May 31) and finally 1.2949 (high May 26).