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• GBP/USD pressed into a new 13-month high on Tuesday.
• Pound Sterling continues to rally on broad-market Greenback weakness.
• Markets are tilting toward Thursday’s Jackson Hole Economic Symposium kickoff.

GBP/USD chalked in another third of a percent gain on Tuesday, squeezing out a fresh 13-month high and closing in the green for a third straight day as the Pound Sterling capitalizes on broad-market Greenback weakness. Market sentiment is holding on the high end ahead of key business activity survey results, and the upcoming kickoff of the Jackson Hole Economic Symposium.

Wednesday will give markets another opportunity to take a breather before high impact data gets underway in the back half of the trading week. UK Purchasing Managers Index (PMI) figures for August are expected to drift upwards slightly, with the UK Services PMI component forecast to tick up to 52.8 from 52.5. The Manufacturing section is expected to hold steady at 52.1.

US PMI business activity survey results are slated for release on Thursday, as well as the kickoff of the annual Jackson Hole Symposium which is set to run through the weekend. Wednesday will deliver the Federal Reserve’s (Fed) latest Meeting Minutes, but market forces will broadly be looking ahead to Thursday’s outings for reasons to move.

US S&P Global Manufacturing PMI activity expectations are forecast to hold steady at 49.6 in August, while the Services PMI component is expected to tick down a full point to 54.0 from 55.0. The kickoff of the Jackson Hole Symposium is expected to draw plenty of investor attention on Thursday, but Friday’s appearance from Fed Chairman Jerome Powell can be expected to set the overall tone of market sentiment heading into next week.

GBP/USD price forecast
 

Cable continues to grind its way higher with price action tapping a fresh 13-month peak bid just above 1.3050 on Tuesday. The pair has closed in the green for all but one of the last nine straight trading days.

However, failure by bulls to push even further beyond current levels could see a short pressure trap build as a double-top forms on daily candlesticks, and an overextended bullish push is looking at a long way to drop before running into the nearest technical barrier at the 50-day Exponential Moving Average (EMA) near 1.2806.

GBP/USD daily chart
 

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