• The GBP/USD pair jumped up towards 1.3372 after data showed Britain's services industry bounced back strongly in August from a slump triggered by June's vote to leave the European Union.
   
• However, the pair reversed course in quick succession as sterling ran out of strengthens against dollar.
   
• Further downside is expected to be limited as the pair finds strong support at 1.3222 which should limit downside and bring a rebound back towards higher levels.
   
• To the upside, the strong resistance can be seen at 1.3420, a break above this level would take the pair towards next resistance level at 1.3481.
   
• To the downside, immediate support can be seen at 1.3285 levels, a break below this level will open the door towards next level at 1.3222.
  
  Resistance Levels
  
  R1: 1.3347 (38.2% Retracement level)
  
  R2: 1.3420 (23.6% Retracement level)
  
  R3: 1.3481 (July 15th high)
  
  Support Levels
  
  S1: 1.3285 (50% Retracement level)
  
  S2: 1.3222 (61.8% Retracement level)
  
  S3: 1.3159 (Aug 24th lows)