GBP/USD keeps highs near 1.2540, PMI eyed

The softer tone around the greenback is allowing GBP/USD to advance further north of the 1.2500 handle on Thursday.

GBP/USD attention to PMI

The recent OPEC deal has boosted the sentiment surrounding the risk-associated assets, pushing spot to clear the key 1.2500 barrier and clinch 2-week peaks near 1.2540 at the end of the Asian session.

In the meantime, GBP continues to show a high degree of resilience despite the broader scenario stays in favour of a stronger buck in the periods to come. It is worth mentioning that the Sterling found extra support after president-elect Donald Trump advocated for stronger link trades between the two countries, while UK fundamentals so far showed a better performance than initially estimated considering the Brexit vote.

Adding to the above, extreme speculative positioning has also prompted a rebound in the pair, although the broader sentiment still remains on the short side.

Looking ahead, November’s Manufacturing PMI tracked by Markit is only due today, ahead of tomorrow’s Construction PMI.

GBP/USD levels to consider

As of writing the pair is gaining 0.21% at 1.2532 facing the next hurdle at 1.2675 (high Nov.11) followed by 1.2809 (100-day sma). On the flip side, a break below 1.2462 (20-day sma) would open the door to 1.2384 (low Nov.29) and then 1.2297 (low Nov.18).