GBP/USD hits fresh one month high, around mid-1.3000s

The GBP/USD pair built on previous session's strong gains and has now risen to its highest level since August 8, around mid-1.3000s. 

On Tuesday, the pair shrugged off disappointing UK services PMI print and surged through the key 1.30 psychological mark amid broad based US Dollar sell-off. 

Against the backdrop of mounting tensions between the US and N. Korea, Tuesday's dovish remarks by various Fed officials added to greenback woes and helped the pair to break through its recent trading range. 

Even today's slightly better-than-expected US trade balance data, coming in to show a deficit of $43.7 billion for July as compared to previous month's $43.6 billion and $44.6 billion expected, did little to lend any strong support to the greenback and stall the pair's up-move to its highest level since early August. 

Today's US economic docket also features the release of ISM non-manufacturing PMI, which would influence sentiment surrounding the greenback and provide some fresh impetus to the major.

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Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "The immediate resistance is 1.3080, the 61.8% retracement of the mentioned Fibonacci rally, with a break above it favoring an extension to the 1.3120/30 region. Below 1.3010, the pair has scope to fall down to 1.2965."