GBP/USD pops to 3-day highs near 1.3570

• Cable adds to Thursday‘s optimism and reaches 1.3565.
• UK final Manufacturing PMI came at 57.1 in September.
• US ISM Manufacturing next of relevance in the docket.

The sterling keeps the recovery well and sound and now lifts GBP/USD to new multi-day highs near 1.3570 on Friday.

GBP/USD up on dollar weakness

Cable advances for the second session in a row on Friday and extends further north the recent breakout of the 1.3500 barrier after bottoming out in fresh 2021 lows near 1.3400 the figure on September 29.

The renewed and quite moderate selling pressure hitting the greenback forced the US Dollar Index (DXY) to quickly abandon the area of recent YTD highs around 94.50 and shift the focus to the 94.00 zone instead, all rendering in much-welcomed oxygen to the risk-linked universe.

The quid finds its way up on Friday following the September’s intense selloff on the back of dollar strength, usual COVID jitters and the fuel crisis that break out in recent days. On the latter, latest news says the fuel shortages could last for yet another week.

The move higher in the British pound comes despite lower yields in the 10-year Gilt, which slip back to the 1.00% barrier so far at the end of the week, all amidst the broad-based recovery in bond prices.

In the UK data sphere, final Manufacturing PMI for the month of September surpassed estimates at 57.1 albeit receded from 60.3.

GBP/USD levels to consider

As of writing, the pair is gaining 0.35% at 1.3560 and a breakout of 1.3598 (10-day SMA) would open the door to 1.3750 (weekly high Sep.23) and then 1.3838 (200-day SMA). On the other hand, the next support emerges at 1.3411 (2021 low Sep.30) followed by 1.3187 (low Dec.21 2020) and finally 1.3134 (monthly low Dec.11 2020).