GBP/USD stays in session highs near 1.3240 post-PMI

The British Pound has reverted the initial pessimism and is now lifting GBP/USD to test daily highs in the 1.3230/40 band.

GBP/USD higher on USD-selling

A bout of selling pressure is now hurting the greenback and forcing the US Dollar Index to retreat to the area of 92.70, or session lows, giving extra oxygen to the risk-associated space.

GBP paid little-to-nil attention to the UK’s construction PMI, missing expectations at 51.9 for the month of July and coming down from June’s 54.8, as market participants continue to look to USD-dynamics as the exclusive driver for Cable’s price action amidst a vacuum of domestic headlines.

Later in the NA session, USD is expected to remain under the microscope in light of the release of July’s ADP report (185K exp.).

GBP/USD levels to consider

As of writing the pair is gaining 0.19% at 1.3232 facing the next hurdle at 1.3244 (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 breach of 1.3097 (10-day sma) would open the door to 1.3089 (23.6% Fibo of 1.2587-1.3244) and finally 1.3029 (short-term support line).

Additionally, the daily RSI (14) is navigating around 66 while the MACD remains within the positive territory.