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Forex pairs in this Article » GBP/USD (Edinburgh) -The sterling is now quickly appreciating against the greenback, lifting the GBP/USD to fresh 2-day highs near 1.6040.

GBP/USD boosted by PMI

The pair is now climbing well beyond the psychological level at 1.6000 on Tuesday after the relevant Services PMI in the UK rose to 62.5 during October, exceeding the median at 59.8 and September’s print at 60.3. Next on tap in the British economy will be the release of the manufacturing and industrial production figures for the month of September, expected to leave behind August’s disappointing results. According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “is seeing a small rebound from the 1.5895 mid October low. Rebounds from here are indicated to remain fairly tepid and shall ideally terminate circa 1.5985/1.6040. We regard the pattern as a potential double top and a close below 1.5895 will complete the pattern to offer a minimum downside measurement to 1.5535”.

GBP/USD key levels

At the moment the pair is advancing 0.32% at 1.6029 and a break above 1.6033 (61.8% of 1.6258-1.5894) would aim for 1.6046 (high Nov.1) and then 1.6070 (high Oct.31). On the downside, the first support aligns at 1.5894 (low Oct.16) ahead of 1.5869 (low Sep.16) and finally 1.5844 (50% of 1.5427-1.6260).
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