GBP/USD flirting with highs near 1.3360

The Sterling remains well supported on Tuesday, with GBP/USD challenging daily tops in the 1.3350/60 band.

GBP/USD focus on US ISM

Spot keeps alive its positive streak for the fifth session today, although a more sustainable break above the critical resistance area around 1.3370 still remains elusive.

Momentum in GBP has been boosted further in recent days following auspicious results from the UK docket, showing confidence among Brits remains well and sound (or even better) after ‘Brexit’.

Speculative positioning has also helped GBP to gather extra legs, as net shorts remain in extreme levels according to the latest CFTC report.

GBP/USD levels to consider

As of writing the pair is gaining 0.36% at 1.3352 and a breakout of 1.3379 (high Sep.5) would open the door to 1.3481 (high Jul.15) and then 1.3646 (38.2% of the post-Brexit down move). On the other hand, the immediate support lines up at 1.3223 (55-day sma) followed by 1.3127 (20-day sma) and finally 1.2863 (low Aug.15).