GBP/USD bulls struggling to break through 1.32 handle

The GBP/USD pair held on to upbeat UK manufacturing data-led strong gains but seemed lacking any strong follow through traction beyond the 1.3200 handle.

The already positive sentiment around the British Pound got an additional boost from today's surprisingly stronger UK’s industrial production/manufacturing production data, which largely negated the disappointing release of UK trade balance figures. 

   •  UK: The flow must go on - Nomura

Adding to this, the National Institute of Economic and Social Research (NISER's) estimates for UK GDP growth during the three months to September, at 0.4% as compared to an upwardly revised August month's estimate of 0.5%, remained supportive of the pair's strong bid tone but again failed to lift the pair beyond the 1.3200 handle. 

Against the backdrop of easing UK political uncertainty, market expectations that BOE might have to tighten policy at a faster pace than previously thought, might now limit any immediate sharp downslide for the major.

   •  UK: Its politics all the way – Rabobank

Moreover, an offered tone around the US Dollar, and absent fundamental driver, clearly seems to suggest increasing possibilities of a convincing break through the 1.32 handle.

   •  Dollar shorts extended, also against GBP – Deutsche Bank

Technical levels to watch

On a sustained move beyond the mentioned hurdle, the pair is likely to dart towards 1.3230-40 horizontal resistance ahead of the 1.3265-70 barrier. 

Conversely, any retracement move from current strong resistance now seems to find immediate some support near the 1.3160 region ahead of 100-day SMA, near the 1.3135-30 region.