GBP/USD inter-markets: sell the rally?

Cable has gathered further steam today following a better-than-expected manufacturing PMI in the UK economy for the month of August, climbing to fresh multi-day tops well beyond the 1.3200 handle.

The up move in GBP comes despite the ongoing rally in the greenback and it is also deriving extra support from the current slump in EUR/GBP, which continues to breach key support levels.

In the same line, UK’s money markets remain buoyant, with yields across the curve in a generalized upbeat mood and lending extra legs to pair’s upside.

Positive results from the UK docket as of late seem to have somewhat mitigated the potential consequences of the ‘Brexit’ scenario and have been also collaborating with GBP momentum, although USD-dynamics and the probability of a rate hike by the Fed in the next months continues to threaten any bullish attempt.

GBP/USD has so far surpassed the key resistance line off July’s top located around 1.3200 the figure, on its way to meet the 55-day sma at 1.3292, while the next relevant level emerges at 1.3321, the 23.6% Fibo retracement of the post-Brexit drop.