GBP/USD eyes 1.3370 on upbeat PMI

The bid tone around the Sterling is now picking up further pace, lifting GBP/USD to fresh tops near 1.3360 in the wake of Services PMI in UK.

GBP/USD firmer on PMI

Spot met extra upside pressure after UK’s Services PMI has ticked higher to 52.9 for the month of August, surpassing estimates and July’s 47.4.

The pair is thus advancing for the fourth consecutive session and now targets August’s top at 1.3373, backed by the prevailing selling bias in the dollar and the continuation of the bullish momentum in GBP.

The ongoing GBP up move has also found support from the extreme speculative positioning, as net shorts remained in record levels during the week ended on August 30, according to the latest CFTC report.

GBP/USD levels to consider

As of writing the pair is gaining 0.48% at 1.3359 and a breakout of 1.3373 (high Aug.3) would open the door to 1.3481 (high Jul.15) and then 1.3646 (38.2% of the post-Brexit down move). On the other hand, the immediate support lines up at 1.3224 (55-day sma) followed by 1.3127 (20-day sma) and finally 1.2863 (low Aug.15).