GBP/USD eyes highs around 1.3160

The British Pound is now extending its rally, pushing GBP/USD higher to the area of fresh tops near 1.3160.

GBP/USD bid post-data

Cable gathered extra steam after UK’s manufacturing production rose more than expected during July, while the trade deficit widened a tad to £11.58 billion during the same period.

Further data saw industrial production expanding 0.2% inter-month and 0.4% over the last twelve months, matching prior surveys. On the not-so-bright side, UK’s construction output contracted at a monthly 0.9% and 0.4% on a yearly basis.

In the meantime, spot keeps the upside intact this week, trading in fresh multi-week tops around 1.3160 and always sustained by the sell off in the greenback.

Later in the session, the NIESR GDP Estimate will close the UK calendar this week, while wholesale inventories and the speech by Philly Fed P.Harker (voter, hawkish) are only expected across the pond.

GBP/USD levels to consider

As of writing the pair is up 0.30% at 1.3150 and a break above 1.3159 (high Sep.8) would open the door to 1.3266 (2017 high Aug.3) and finally 1.3447 (high Sep.6 2016). On the flip side, the immediate support lines up at 1.2991 (10-day sma) seconded by 1.2976 (55-day sma) and finally 1.2933 (21-day sma).