GBP/USD testing highs near 1.2260 ahead of data

The demand for the Sterling is now picking up extra pace, lifting GBP/USD to the area of daily tops in the mid-1.2200s.

GBP/USD now looks to UK data, FOMC

The pair is extending its consolidative theme in the lower bound of the recent range, looking to stabilize following the drop from December’s top near 1.2800 the figure.

The solid performance of the greenback continues to limit occasional bullish attempts despite recent positive results in the UK docket. Recall that manufacturing PMI has surprised markets to the upside during last month, although the pair’s bull run fizzled out just above the 1.2300 handle on Tuesday.

Today’s calendar in the UK includes Construction PMI, Mortgage Approvals and BoE’s stats: Net Lending to Individuals, Consumer Credit and M4 Money Supply.

On the positioning side, GBP net shorts have been trimmed to the lowest level since early July during the week ended on December 27 according to the latest CFTC report, which can somewhat help Cable to limit the downside.

GBP/USD levels to consider

As of writing the pair is advancing 0.15% at 1.2258 and a break above 1.2308 (high Jan.3) would open the door to 1.2389 (high Dec.30) and finally 1.2412 (55-day sma). On the other hand, the immediate support aligns at 1.2198 (low Jan.3) ahead of 1.2112 (low Oct.28) and then 1.2081 (low Oct.25).