GBP/USD headed beyond 1.3060 or back to 1.2910/20?

Currently, GBP/USD is trading at 1.2994, up 0.52% on the day, having posted a daily high at 1.3016 and low at 1.2924.

GBP/USD posted a fresh high today on broad dollar weakness. One of the catalysts comes as Federal Reserve Bank of St. Louis President James Bullard speaking in London who said that the U.S. is trying to go it alone among global central banks, which he said you can do but that you need strong data behind you. "Need to question how far can push yield curves given global environment. Inflation breakevens suggest fed is being too hawkish."

Fed's Bullard: September seems more likely to announce balance sheet adjustment

Earlier, the pound also got a boost Thursday after Bank of England economist Andy Haldane added to the hawkish tilt by repeating his notion from a week ago. Haldane explained that the BOE must consider raising rates to “keep a lid on the cost of living increases.” On Wednesday, BOE Governor Carney also raised the prospect of rate hikes when he was warning that there’s a limit to the bank’s patience with above-trend inflation.

GBP/USD levels

"We see key resistance at 1.3047 and minor support at 1.2950/55; below here could see the GBP slip back a little more towards 1.2910/20," argued analysts at Scotiabank. Meanwhile, analysts at Commerzbank suggested that only above 1.3060 would target the 1.3446 September 2016 high.