GBP/USD: retains the 1.32 handle, eyes 2009 low on the wide

Currently, GBP/USD is trading at 1.3210, down -0.04% on the day, having posted a daily high at 1.3246 and low at 1.3191.

GBP/USD is consolidating below the 11-month high of 1.3240 that was scored overnight after the UK's July manufacturing PMI beat at 55.1 vs 54.3 expected. The dollar remains on the back-foot, despite upbeat manufacturing in July, due to political uncertainties with Trump's firing of Anthony Scaramucci, ex-communications director and has enabled the recent highs in sterling. 

In respect to the UK data today, "the manufacturing sector continues to benefit from an improving global outlook, but wider domestic economic headwinds mean a Bank of England rate hike is unlikely this year," explained analysts at ING Bank, adding, "Wider economic data, from the weak 2Q growth reading to the latest dip in consumer confidence, suggests that the economy is losing speed. For that reason, we think the Bank of England is unlikely to hike rates this year."

US: Economic activity in the manufacturing sector expanded in July - ISM

GBP/USD levels

As far as technicals go, analysts at Commerzbank noted that GBP/USD has eroded a pivot line from January 2017 and TD resistance at 1.3205. "The move above 1.3205 targets the 1.3502 2009 low. It has a near term uptrend at 1.3018 and 20-day ma at 1.3017, while above here it is bid. Where are we wrong? Below the uptrend will trigger losses to the support circa 1.2775/50," argued the analysts.