GBP/USD keeps red after strong ADP report
|The GBP/USD pair failed to extend the recovery momentum, albeit had a muted reaction to the release of strong ADP report on US private sector employment.
Currently trading around 1.2460-55 region, the pair remained in negative territory, still around 40-pips off session low near 1.2420 touched during European session, after ADP report showed US private sector added 216K jobs during the month of November, surpassing even the most optimistic estimates and was much stronger-than October’s 147K.
Today’s ADP report reaffirmed the underlying strength in the US labor market and might have now raised barrier for Friday’s official data, popularly known as NFP.
Next on tap from the US economic docket would be the Fed's preferred inflation gauge - Core PCE Price Index, Chicago PMI and pending home sales data. Later during NY trading session, speech from Federal Reserve Governor Jerome Powell might also provide some impetus.
Technical outlook
Valeria Bednarik, Chief Analyst at FXStreet, notes, “Technically, the GBP/USD 4 hours chart presents a modest upward tone, given that the price has settled above its moving averages, while the RSI indicator aims higher around 56. Still the Momentum indicator maintains a neutral stance, heading lower around its 100 level. Selling interest around 1.2500/30 remains strong, and would take a break above this last to see the pair gaining some ground towards the 1.2600 region.”
“Below the daily low on the other hand, the risk turns towards the downside, with 1.2400 and 1.2365 as the next probable bearish targets.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.