GBPUSD Rallying on UK PMI Beat

GBP Rallying on Better PMIsThe British Pound is seeing firm demand across the European morning on Wednesday. GBPUSD is up around 0.72% on the day and close to testing current 2024 highs following some better UK data this morning. The latest round of UK PMIs came out better than forecast for last month with the manufacturing PMI seen rising to 47.3 from 46.2 prior, above the 46.7 the market was looking for. While still below the key 50 level, this marks the second month in a row the data has risen, showing encouraging momentum.Services PMI Rises AgainThe services PMI, which accounts for the bigger portion of GDP, was seen rising to 53.8 from 53.4, above the 53.1 the market was looking for. This marks the fourth consecutive rise in service PMI.  In all, the composite PMI for the UK rose to 52.5 from the prior month’s 52.1 reading, slightly better than the 52.2 the market was looking for.BOE ImplicationsTraders are clearly cheering the data given the moves we are seeing in GBP. However, the keener read is likely that the data serves as further evidence of the potential need for further BOE tightening on the back of hotter-than-forecast inflation figures last week. With data holding up better than expected and with CPI moving higher, traders sense that the bank might well strike a hawkish tone when it meets next week, keeping GBP supported near-term.Technical ViewsGBPUSDThe latest test of the 1.2612 level has seen the area holding as firm support once again. Price is now quickly approaching a fresh test of the 1.2832 level and the retest of the broken bull channel lows. If bulls can break this area, focus will shift to 1.2992 above as the next objective.