The Cable is on fire, continuing its rapid ascent towards the highly psychological 1.50 area. The Pound is outperforming as Britain's economic data continues to beat analyst expectations.

Both Britain's Manufacturing and Services PMI data points showed improvement last week. While America and the EUs' economic data points are coming in mixed, Britain's data is stabilizing on all critical economic fronts.

As a result, the GBP/USD is surging while the EUR/GBP drops into a downtrend. In the process, the Cable has broken through all foreseeable downtrend lines, and it appears as if this could be the second leg of a lasting uptrend.

However, some technical barriers remain in the Cable's path, including 1.50 and 2009 highs. Therefore, we wouldn't be surprised to see some near-term consolidation as the GBP/USD battles with the 1.50 area.

Regardless, the momentum clearly remains to the upside for the GBP/USD. Britain will release Manufacturing Production tomorrow and analysts are expecting a decline of
-1.4%, which would be a vast improvement over last month's -2.9%.

Fundamentally, we find resistance of 1.4946 with additional resistances hanging at 1.4987, 1.5025, 1.5065 and 1.5111. The 1.50 level serves as a key psychological barrier while the 1.45 area acts as a psychological cushion.

To the downside, we see supports of 1.4883, 1.4831, 1.4786, 1.4730 and 1.4683. The GBP/USD is currently exchanging at 1.4935.

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