GBP/USD flirting with tops around 1.3270
- GBP still underpinned by positive Q3 GDP figures.
- Cable’s rally largely on the back of USD weakness.
- Focus now shifted to the ECB meeting due later.
The Sterling is adding to yesterday’s strong gains and is now taking GBP/USD to the area of 1.3270/80, or daily tops.
GBP/USD attention to USD, ECB
Cable met extra buying pressure on Wednesday after advanced GDP figures for the third quarter surprised to the upside, quickly prompting GBP to gain over a cent vs. the buck following the release.
The pair stays in the upper end of the range for the time being, always amidst the continuation of the selling bias around the US Dollar and in a cautious trade in light of the upcoming ECB meeting later in the European afternoon.
In the meantime, speculations of a rate hike by the Bank of England at the November meeting have revived in the wake of the GDP release, somewhat relegating previous concerns sparked after dovish comments by BoE’s Cunliffe earlier in the week.
In the data space, UK’s distributive trade survey by CBI is only due, whereas initial claims, pending home sales and the speech by Minneapolis Fed N.Kashkari (voter, dovish) are all expected across the pond.
GBP/USD levels to consider
As of writing the pair is gaining 0.04% at 1.3269 and a breakout of 1.3338 (high Oct.16) would pave the way for a test of 1.3519 (2014-2017 resistance line) and finally 1.3658 (2017 high Sep20). On the other hand, the next support emerges at 1.3227 (21-day sma) seconded by 1.3216 (10-day sma) and then 1.3163 (55-day sma).