Pound Coin
Pound Coin Reuters

Data surprises have been pushing the British pound higher and higher of late, and the Markit manufacturing PMI released on 1 July has taken it one step closer to a crucial technical level.

The June PMI came in at 57.5 from 57.0 in May, beating analysts' forecast of 56.8, data showed on Tuesday. GBP/USD jumped to 1.7148, a new five-year high, after the release from near 1.7108 prior to that.

Ever since the 1.6750 resistance was broken, Sterling has been eyeing 1.7350, the 50% Fibonacci retracement of the November 2007 to January 2009 downtrend.

GBP/USD is now just 200 pips away from that level, a distance the pair has covered within just six days to 1 July.

The pair will target 1.8250 once the 1.7350 mark is broken, but there are two intermediate levels 1.7443 and 1.8090.

Further north, GBP/USD will have to pass through two resistance zones 1.8515-1.8670 and 1.9180-1.9330 before hitting the psychologically very significant $2 mark.

GBP/USD Weekly
GBP/USD Weekly IB Times UK/FXStreet

In the short term, the pair has supports at 1.7096, 1.7052 and 1.7022 ahead of the 25 June low of 1.6952.

GBP/USD Hourly
GBP/USD Hourly IB Times UK/FXStreet

The US Markit PMI and ISM manufacturing PMI index are due on Tuesday around 14:00 GMT but the very important US non-farm payrolls and unemployment rate on Thursday will be the most keenly watched ones.