• GBP/USD declined on Wednesday as sterling was weighed down after Britain’s services sector added to a string of weak-looking surveys and data that could deter the Bank of England from raising record-low interest rates for the first time in ten years.
   
• Growth across British services companies fell to a four-month low in June and companies were their least optimistic in nearly a year, according to Wednesday's Markit/CIPS UK Services Purchasing Managers' Index (PMI).
   
• The index edged down to a four-month low of 53.4 in June from 53.8 in May, just shy of a forecast for 53.5 in a poll of economists, adding to surveys from the manufacturing and construction sectors which disappointed forecasts.
   
• Further upside for this pair is expected to be limited as strong resistance level at 1.2987 is set to limit upside and bring decline towards lower levels.
   
• To the upside, immediate resistance can be seen at 1.2937, a break above this level would expose the cable to next resistance level at 1.2987 levels.
   
• To the downside strong support can be seen at 1.2872, a break below at this level will open the door towards next level at 1.2840.
  
  Resistance Levels
  
  R1:  1.2937 (38.2% Retracement level)
  
  R2: 1.2987 (50% Retracement level)
  
  R3: 1.3036 (61.8 % Retracement level)
  
  Support Levels
  
  S1: 1.2872 (23.6% Retracement level)                    
  
  S2: 1.2840 (June 2nd lows)
  
  S3: 1.2800 (Psychological levels)