GBP/USD spikes to session tops, around mid-1.3100s post-UK PMI

• GBP/USD gains some positive traction amid some renewed USD weakness.
• Upbeat UK Services PMI betters expectations and provides an additional lift.
• Fears of a no-deal Brexit might keep a lid on any runaway rally for the major.

The GBP/USD pair finally broke out of its daily consolidative trading range and spiked to session tops, around the 1.3140-45 region post-UK PMI.

Following a modest uptick, the US dollar came under some renewed selling pressure during the early European session on Monday and turned out to be one of the key factors that provided a modest lift to the major.

Upbeat UK PMI further underpinned the pound

The British pound found some additional support from stronger-than-expected final UK Services PMI, which improved from 49.0 flash estimate to 50.0 in December – a point differentiating expansion and contraction territories.

The pair has now recovered a major part of the previous session's downfall, albeit the uptick is likely to remain limited amid concerns that the UK won't be able to reach a trade agreement and crash out of the European Union at the end of this year.

Moving ahead, there isn't any major market-moving economic data due for releases from the US. Hence, the USD price dynamics might continue to act as a key determinant of the pair's intraday momentum on the first day of a new trading week.

Technical levels to watch