STERLING MOVES TO NEW HIGHS

The GBPUSD pair has moved to a new 2017 trading high during the European session, hitting 1.3244. Traders continued to buy sterling, despite a much weaker than expected reading for the July UK Construction PMI, which dropped to 51.9 from 54.8 in the previous month.

In the upcoming U.S session, the ADP unemployment report for July will be released, British pound traders may however remain cautious ahead of the Bank of England interest rate decision and policy statement tomorrow.

The GBPUSD pair remains bullish on all time frames and continues to create higher price highs, indicating further upside for the British pound.

Near-term upside targets for the GBPUSD pair remain 1.3280, 1.3300 and the September 12th, 2016 price high, at 1.3347.

Technical support for the GBPUSD pair is found at the 1.3204 level, which represents the critical monthly time frame 20 period moving average.

Further support is found at the daily pivot point, at 1.3190, whilst extended intraday support is located at 1.3125.