GBP/USD around 1.3100 ahead of US data

The bid tone around the Sterling remains intact on Wednesday, with GBP/USD now hovering over the 1.3100 neighbourhood.

GBP/USD bid despite USD-strength

Spot keeps its daily gains in spite of the continuation of the USD-rally, which gathered extra pace after US ADP report has come in above expectations for the month of August (177K) ahead of Friday’s key Non-farm Payrolls.

However, the pair has faded part of the earlier spike to highs near 1.3160, now looking to stabilize in the 1.3100 neighbourhood in light of the upcoming US Pending Home Sales results.

Looking ahead, UK’s manufacturing PMI is due tomorrow followed by Friday’s Construction PMI.

GBP/USD levels to consider

As of writing the pair is gaining 0.09% at 1.3092 and a breakout of 1.3200 (resistance trend line off July’s high) would open the door to 1.3281 (high Aug.23) and then 1.3321 (23.6% of the post-Brexit down move). On the other hand, the immediate support lines up at 1.3000 (psychological level) followed by 1.2863 (low Aug.15) and finally 1.2849 (low Jul.11).