GBP/USD jumps to highs beyond 1.3200

An abrupt wave of buying interest around the Sterling is now pushing GBP/USD to fresh daily highs above the 1.3200 handle.

GBP/USD in 3-week high

The pound met extra upside pressure on Wednesday after EUR/GBP broke below 0.8550 and the greenback continued to shed ground, now slipping back to the negative territory when gauged by the US Dollar Index.

Spot is thus advancing to levels last seen in early August near 1.3240 helped at the same time by record speculative net shorts in GBP in the week ended on August 16, according to the latest CFTC report.

GBP/USD levels to consider

As of writing the pair is advancing 0.25% at 1.3230 facing the next hurdle at 1.3321 (23.6% of the post-Brexit down move) followed by 1.3373 (high Aug.3) and then 1.3481 (high Jul.15). On the other hand, a breakdown of 1.3107 (20-day sma) would aim for 1.2863 (low Aug.15) and finally 1.2849 (low Jul.11).