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  • The GBP/USD printed a session high above 1.30 a few minutes before press time.
  • An above-forecast UK services PMI reading could yield stronger rally in the GBP.

The bid tone around the GBP strengthened on Wednesday, pushing the GBP/USD to a session high of 1.3002.

The currency pair defended the trendline sloping upwards from the Aug. 15 low and Sept. 5 low yesterday and was last seen trading at 1.2995, representing 0.10 percent gains on the day.

The UK PMI, scheduled for release at 08:00 GMT, is expected to show that pace of the expansion in the service sector remained largely unchanged at 54.00 index points in September. The GBP/USD may rise towards the 50-day exponential moving average (EMA) of 1.3049 if the services PMI beats estimates by a big margin.

Beyond PMI, the GBP/USD market will also take cues from headlines covering both Brexit and political tensions within the Eurozone.

GBP/USD Technical Levels

Resistance: 1.3029 (5-day EMA), 1.3049 (50-day EMA), 1.3116 (Oct. 1 high)

Support: 1.2970 (Asian session low), 1.2950 (rising trendline support), 1.2897 (Sept. 10 low)