GBP/USD surges to fresh 2-week tops, around mid-1.3100s

  • GBP/USD rallied amid signs of recovery in the UK manufacturing sector.
  • A modest USD pullback remained supportive of the strong momentum.
  • Technical buying above the 1.3100 mark provided an additional boost.

The GBP/USD pair continued scaling higher through the early North-American session and climbed to fresh two-week tops, around mid-1.3100s in the last hour.

Following a brief consolidation through the early part of Wednesday's trading session, the pair caught some aggressive bids after the latest CBI report showed that the UK manufacturing sector started the year on a strong footing.

Adding to this, the Quarterly Business Situation Index – the gauge of optimism in the manufacturing sector – rebounded sharply to +23 in January from -44 in October and marked its highest level since April 2014.

The data added to the latest optimism led by Tuesday's stronger-than-expected UK wage growth figures and forced investors to temper expectations for an imminent interest rate cut by the Bank of England at its upcoming meeting on January 30.

This resulted into some aggressive intraday short-covering move, which took along some near-term trading stops being placed near the 1.3100 round-figure mark and further accelerated the intraday positive movement amid a modest US dollar pullback.

With Wednesday's strong move up, the pair finally seems to have confirmed a near-term bullish breakthrough a three-week-old descending trend-channel. Hence, some follow-through strength, possibly beyond the 1.3200 handle, now looks a distinct possibility.

Technical levels to watch


Today last price 1.3148
Today Daily Change 0.0104
Today Daily Change % 0.80
Today daily open 1.3044
Daily SMA20 1.3077
Daily SMA50 1.3042
Daily SMA100 1.2814
Daily SMA200 1.269
Previous Daily High 1.3084
Previous Daily Low 1.2995
Previous Weekly High 1.312
Previous Weekly Low 1.2954
Previous Monthly High 1.3515
Previous Monthly Low 1.2896
Daily Fibonacci 38.2% 1.305
Daily Fibonacci 61.8% 1.3029
Daily Pivot Point S1 1.2998
Daily Pivot Point S2 1.2952
Daily Pivot Point S3 1.2909
Daily Pivot Point R1 1.3087
Daily Pivot Point R2 1.313
Daily Pivot Point R3 1.3176



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD recovers within range, lacks follow-through

Encouraging macroeconomic data from the EU and the US boosted risked sentiment, which in turn, helped EUR/USD to advance, currently nearing the weekly high at 1.2075.


GBP/USD trades around 1.39 after a choppy reaction to the BOE

GBP/USD is trading around 1.39 after an 80-pip move around the BOE's "Super Thursday." The bank announced a slowdown in buying bonds but no change to the overall scope. US jobless claims and elections in Scotland are awaited. 


Gold Price Analysis: Gold bears seeking a correction to test bullish commitments

Gold has broken above the $1,800 mark, hitting the highest levels since February. The Confluence Detector is showing that XAU/USD has very few barriers through $1,850. Bears are lurking at resistance structure, eyeing a correction ahead of NFPs.

Gold News

Dogecoin price targets $1 as the chase for high-yielding cryptos accelerates

Dogecoin price strength combined with the complementary volume highlights the continued fascination in the digital token, portending further gains in the days ahead.

More Dogecoin News

US Nonfarm Payrolls April Preview: When the economy booms, its all about rates

The US labor market’s stars appear aligned for April.The economy is expanding rapidly, employers are confident and consumers eager to throw off the restraints of the past year.

Read more