GBP/USD rises to a high of 1.3298 on the day

All this ahead of UK data which is to come at the bottom of the hour. GBP/USD touches a high of 1.3298 before backing off near offers and resistance at the 1.3300 handle.

The initial spike in sterling stalled at the 50.0 retracement level @ 1.3271 before moving back lower to near the 38.2 retracement level @ 1.3252 and then we're now seeing a nudge higher again.

I don't want to say leak, but it looks like the market is positioning itself for favourable UK figures to come out later. The fact that there is relative silence to come from the aftermath of Boris Johnson's resignation and no follow through on any no confidence motion against Theresa May seems to be giving sterling bulls more confidence to jump back in as well.

For upside moves, the 1.3300 handle will be key to watch but also the 76.4 retracement level @ 1.3313 again. That will be followed by resistance near the 1.3325 handle and 1.3350-63.

As for the downside, the 100-hour MA will be the first level to watch out for along with the 38.2 retracement level @ 1.3251-52. Below that will be the lows seen earlier today near the 23.6 retracement level at 1.3228. Following which will be the 1.3200 handle (also the 200-hour MA here) and the lows yesterday at 1.3190.