GBP/USD stays above 1.3300 on PMI

• UK’s PMI came in above expectations in October.
• Cable moves beyond 1.3300, fresh tops, on sentiment and data.
• Expectations of a BoE hike on Thursday keeps bolstering mood.

The Sterling is extending its daily gains vs. the buck on Wednesday and is now prompting GBP/USD to clinch fresh tops above the critical 1.3300 up barrier.

GBP/USD bid post-data

Cable met further upside pressure after UK’s manufacturing PMI rose above expectations to 56.3 for the month of October, surpassing at the same time September’s reading at 56.0 (revised from 55.9).

The pair is thus extending the weekly upside beyond 1.3300 the figure, or 3-week tops, always underpinned by speculations of a 25 bp rate hike by the Bank of England at tomorrow’s meeting.

Looking ahead, investors will closely follow the speech by BoE’s Sir J.Cunliffe later in the session, particularly after his somewhat dovish comments last week.

GBP/USD levels to consider

As of writing the pair is gaining 0.17% at 1.3304 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).