GBP/USD spikes back above 1.3200 handle ahead of UK construction PMI

A fresh bout of US Dollar selling pressure seems to have emerged during early European trading session and helping the GBP/USD pair move back above 1.3200 handle to currently trade near session high around 1.3225-30 band. 

Despite of its up-move the pair remains confined within a broad trading range as market adopt a wait and watch policy ahead of this week's key event risk, BOE monetary policy decision on Thursday. 

In the meantime, traders will have a look at Tuesday's UK construction PMI data, which is expected to add on to the signs of post-Brexit economic fall-out and increase prospects of an eventual BOE monetary easing, as early as on Thursday. 

Traders will also confront the release of Core PCE Price Index from the US, which if shows a downtick in inflation might further diminish the possibilities of an imminent Fed rate-hike in 2016 and provide a much needed respite for cable.

Technical levels to watch

From current levels, a sustained move above 1.3250-60 immediate horizontal resistance has the potential to continue boosting the pair towards its next major resistance near 1.3300 round figure mark, above which the pair seems all set to extend its recovery trend in the near-term.

On the flip side, weakness below session low support near 1.3170 region is likely to accelerate the fall, even below 1.3100 handle, towards its next major support near 1.3080-70 zone.