STERLING CONTAINED AT 1.3240
Sterling moved a new 2017 trading high during the European session, hitting 1.3240, following a better than expected 55.1 reading for UK manufacturing, which showed that PMI manufacturing activity rebounded sharply for the month of July.
The 1.3240 level has now become strong technical resistance for the GBPUSD pair, and represents the 50 percent Fibonacci retracement of the Brexit vote spike high, attached to the 2016 price low.
Key GBPUSD technical support ahead of incoming U.S data is found at the monthly time frame 20 period moving average, at 1.3203. Further support is found at the daily pivot, at 1.3190 and the former swing high, at 1.3158.
To the upside, a move above the 1.3240 resistance level becomes the key for further GBPUSD upside. With price likely to target likely towards 1.3280 and 1.3348 levels once closing above 1.3240.