GBP/USD off highs, back to 1.3150

GBP/USD keeps the upbeat tone at the beginning of the week, currently deflating to the mid-1.3100s after testing highs at 1.3160.

GBP/USD higher on USD-selling

Spot continues to recover ground after last Friday’s sharp retracement to fresh lows in the 1.3075/70 band following the miserable readings from UK’s Services PMI for the current month.

Data wise in the UK docket, CBI’s Industrial Trends Orders have bettered estimates for the month of July at -4 vs. -6 forecasted and June’s -2. In the US, the regional manufacturing gauge tracked by the Dallas Fed index is only due later (-10 exp.).

Regarding positioning and according to the latest CFTC report, speculative GBP net shorts have climbed to levels last seen in June 2013.

GBP/USD levels to consider

As of writing the pair is advancing 0.31% at 1.3150 and a break above 1.3321 (23.6% Fibo of 1.5020-1.2796) would expose 1.3481 (high Jul.15) and finally 1.3535 (high Jun.29). On the other hand, the next support lines up at 1.3061 (low Jul.20) followed by 1.2849 (low Jul.11) and then 1.2797 (20916 low Jul.6).