• The GBP/USD rose higher on Thursday as after stronger-than-expected data from Britain's services sector boosted sterling across the board.
   
• The Markit/CIPS Services Purchasing Managers' Index (PMI), a closely watched gauge of Britain's services industry, rose to a four-month high of 55.8 in April, above all forecasts of economists.
   
• The services sector PMI followed better-than-expected manufacturing and construction surveys.
   
• The pound was up 0.4 percent at 1.2919 per dollar and looked set to approach a seven-month high of 1.2965 hit last week on market optimism around the election.
   
• Further, downside for this pair should be limited as sterling is set to strengthen further against the greenback in the short term.
   
• To the upside, immediate resistance can be seen at 1.2955, 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 1.2870, a break below at this level will open the door towards next level at 1.2828.
  
  Resistance Levels
  
  R1:  1.2955 (38.2 % Retracement level)
  
  R2: 1.3000 (Psychological levels)
  
  R3: 1.3063 (23.6 % Retracement level)
  
  Support Levels
  
  S1: 1.2870 (50 % Retracement level)                       
  
  S2: 1.2828 (Daily lows)
  
  S3: 1.2783 (61.8% Retracement level)