• GBP/USD rose on Tuesday as sterling was bolstered by upbeat UK manufacturing growth which surged to a three-year peak in April, adding to signs that factories are enjoying at least a temporary boost from the pound's recent weakness.
   
• The Markit/CIPS UK Manufacturing Purchasing Managers' Index (PMI) rose to 57.3 from 54.2 in March, exceeding all forecasts of economists which had pointed to a slight decline to 54.0.
   
• Sterling strengthened to the day's high of $1.2930, up from $1.2888 beforehand, before easing back to trade around $1.2915 in the afternoon US session.
   
• However, further upside for this pair is expected to be limited as strong resistance level at 1.3060 is set to limit upside and bring decline towards lower levels.
   
• To the upside, immediate resistance can be seen at 1.2972, a break above this level would expose the cable to next resistance level at 1.3000 levels.
   
• To the downside strong support can be seen at 1.2884, a break below at this level will open the door towards next level at 1.2833.
  
  Resistance Levels
  
  R1:  1.2972 (50 % Retracement level)
  
  R2: 1.3000 (Psychological levels)
  
  R3: 1.3060 (61.8 % Retracement level)
  
  Support Levels
  
  S1: 1.2884 (38.2 % Retracement level)                   
  
  S2: 1.2833 (April 27th lows)
  
  S3: 1.2776 (23.6 % Retracement level)