GBP/USD bounces off 1.3200 post-PMI

The Sterling found buying interest in the 1.3200 neighbourhood vs. the buck on Tuesday, with GBP/USD advancing to 1.3215/20 in the wake of the manufacturing PMI results.

GBP/USD bid above 1.3200

Cable recovered the positive territory after UK’s manufacturing PMI bettered expectations in July, advancing to 55.1 vs. 54.3 forecasted and up from June’s 54.2 (revised from 54.3).

Spot met some selling pressure after clinching fresh cycle tops in the 1.3230/35 band during overnight trade, although some decent support appears to have emerged around 1.3200 the figure.

In the meantime, the pair’s rally is advancing for the second week in a row so far today and is extending the bull run since June’s lows around 1.2590. In terms of relevant hurdles, the next one emerges in the 1.3440 region, levels last traded in September 2016.

GBP/USD levels to consider

As of writing the pair is up 0.09% at 1.3227 facing the next hurdle at 1.3232 (2017 high Aug.1) followed by 1.3351 (high Sep.12 2016) and finally 1.3447 (high Sep.6 2016). On the other hand, a break below 1.3098 (low Jul.31) would open the door to 1.3080 (23.6% Fibo of 1.2587-1.3232) and finally 1.3077 (10-day sma).