GBP/USD was already up to around 1.2730 but is now pulling higher to 1.2750 levels after the UK PMI data here. The beat on both the services and manufacturing prints in the UK reaffirms that the economy is keeping more resilient in recent months and that’s good news for the BOE. At a time when inflation might prove to be more stubborn and resistant, the fact that the economy is holding up will allow them more breathing room at least.

As seen above, the near-term chart is showing that buyers are in control once again for GBP/USD.

However, the bigger picture continues to show much consolidation since mid-December. The topside of that remains the 1.2800 mark and buyers will have to break above that to really push for an extension towards 1.3000 next.

This article was written by Justin Low at www.forexlive.com.