GBP/USD: Bulls have 1.3000 on their minds, but awaiting FOMC

Currently, GBP/USD is trading at 1.2920, up 0.27% on the day, having posted a daily high at 1.2931 and low at 1.2864.

UK: Exceptionally strong manufacturing PMI surprised markets - BBH

GBP/USD has stalled after a jab or two at the 1.2920 resistance area in US trade. Overnight, in the London session, the pound was boosted due to a good result in UK data again. Despite some concerns over Brexit, the UK is proving resilient with a  much better than expected Markit manufacturing PMI for April gaining to 57.3, from 54.2 in Mar. "The sharp jump in output took manufacturing to its fastest pace of growth in three years, reflecting a competitive exchange rate and rising global demand," explained analysts at Scotiabank, adding, " strong data lifted Cable from the 1.2865/70 area to the low 1.29s"

Bulls have yet again the green light to take this to the 1.30 handle although would be nervous doing so ahead of the FOMC and nonfarm payrolls at the end of this week. Upcoming UK data includes construction and services PMIs, of which Valeria Bednarik, chief analysts at FXStreet explained that if they came better-than-expected, they would result in a break above the level

GBP/USD levels

GBP/USD stays bid near term – Commerzbank

GBP/USD short-term technicals remain bullish after today's recovery spike. "Cable edged slightly lower in quiet trade yesterday but strong demand in European trading from the upper 1.28s has put in a bullish, short-term candle on the intraday chart and firmed up support for the pound at 1.2865," explained analysts at Scotiabank suggestingcCable may be able to retest 1.2950/60 near-term. On a break of the 1.30 handle, through 30th Sep 2016 weekly highs at 1.2963, 1.3020 guards 21st Sep 2016 1.3120 high.