GBP/USD technical analysis: Eases back below mid-1.2100s on softer UK services PMI

• The pair built on the overnight solid rebound from multi-year lows.
• The up-move stalls ahead of 200-hour SMA/61.8% Fibo. resistance.
• Set-up points to the emergence of dip-buying interest near 1.21 mark.

The GBP/USD pair gained strong follow-through traction on Wednesday and built on the previous session’s solid intraday bounce of around 150-pips from sub-1.20 level, or near three-year lows.
 
Given that the pair had already found acceptance above the 38.2% Fibo. level of the 1.2310-1.1958 recent down-leg, move beyond 100-hour SMA barrier was seen as a key trigger for bullish traders.
 
The positive momentum, however, failed ahead of another confluence resistance – comprising of 61.8% Fibo. level and 200-hour SMA – following the disappointing release of UK services PMI print for August.
 
The mentioned barrier – around the 1.2175-80 region – might now act as an immediate strong resistance and a sustained breakthrough will be needed for any further near-term recovery move.
 
Meanwhile, technical indicators on hourly charts have been gaining positive traction and recovering from the bearish territory on the daily chart, supporting prospects for some dip-buying interest.
 
Hence, any meaningful slide back towards the 1.2100 handle might still be seen as an opportunity to initiate fresh bullish bets and thus, limit the downside amid receding fears of a no-deal Brexit.

GBP/USD 1-hourly chart