GBP/USD Extended the rally to fresh yearly high

GBP/USD is still moving higher and is marking a fresh new yearly high. Today the pair is developing above 1.32 handle and had posted daily high at 1.3239. The Pound is supported by the good numbers of July’s  Markit manufacturing PMI that showed excellent export performance. 

Technically speaking, the pair is showing  strong bullish momentum on the four-hour time frame.  The price is well above its bullish moving averages. RSI and stochastic are located within extreme overbought territory but both are losing directional stregth. As currently the US dollar is very weak and is not interesting for the market players, these overbought conditions might be neglected in the short term.
Above the daily high, bulls are challenged by 1.3280 and higher by 1.33 area. Looking to downside first support is seen at 1.3190 and in case of breaking it, a corrective move might be expected around 1.3145.