GBP/USD struggles for direction near 1.3300
- GBP’s rally faces strong resistance around 1.3300.
- Expectations of a rate hike by the BoE tomorrow stay on the rise.
- UK manufacturing PMI, speech by Cunliffe next on tap.
The upside momentum around the Sterling has now found a strong hurdle in the vicinity of the 1.3300 handle vs. the greenback, with GBP/USD running out of steam in the 1.3290/95 band, or session tops.
GBP/USD attention to PMI
After two consecutive advances, Cable met some significant resistance today, although the sentiment around the British Pound appears quite firm on the back of solid expectations of a move on rates by the Bank of England at its meeting on Thursday.
Cable gained more than two cents since Friday’s lows near 1.3070, although a more sustainable upside seems to hinge on the shoulders of the BoE and particularly on the likeliness of a hawkish message at Thursday’s meeting.
Ahead in the session, the key manufacturing PMI is due in the UK docket, seconded by a speech by BoE’s Sir J.Cunliffe. Across the pond, the critical ISM manufacturing will be the salient point ahead of the FOMC interest rate decision.
GBP/USD levels to consider
As of writing the pair is gaining 0.02% at 1.3284 and a breakout of 1.3338 (high Oct.13) would open the door to 1.3501 (2014-2017 resistance line) and finally 1.3658 (2017 high Sep.20). On the other hand, the next support emerges at 1.3202 (10-day sma) seconded by 1.3182 (55-day sma) and then 1.3070 (low Oct.27).