GBP/USD rises as UK manufacturing PMI beats expectations at 51.8

GBP/USD gained 0.2% to 1.2485 following stronger-than-expected UK manufacturing data for January. The final manufacturing PMI came in at 51.8, surpassing both the preliminary reading of 51.6 and December's 50.6, marking the strongest expansion since early 2024. New export orders rose for the first time in four years, with increased demand from Europe, China, and the US driving the improvement. Business optimism reached its highest level since before the 2024 Autumn budget, suggesting sustained economic momentum. The pound's advance was tempered by ongoing geopolitical tensions and uncertainty surrounding the Bank of England's rate trajectory. Technical indicators show GBP/USD facing immediate resistance at 1.2500, with support established at 1.2450. A sustained break above 1.2500 could open the path toward 1.2550, while traders await Thursday's Bank of England policy decision for further directional clarity.