• GBP/USD rallies from daily low of 1.2707 to trade above the 1.2800 mark.
• Key resistance levels reclaimed: 50-DMA at 1.2787 and 1.2800 mark; next targets are 1.2860, 1.2900, and 1.2950.
• If GBP/USD falls below 1.2800, it may range between 1.2800 and 1.2700, with further support at 100-DMA (1.2683).

The Pound Sterling rallied sharply against the US Dollar after recent economic data from the United States (US) sparked speculation that the US Federal Reserve might cut interest rates faster than expected. The GBP/USD trades at 1.2833 after hitting a daily low of 1.2707.

The Greenback is being battered, given the backdrop of the July ISM Manufacturing PMI plunging to its lowest level since December 2023 and Nonfarm Payrolls missing the mark. Market participants had begun to price in a larger rate cut at the upcoming September meeting.