GBP/USD rebounds sharply, 1.4100 back on sight
| • Escalating US-China trade tensions offset upbeat ADP report.
• US ISM services PMI fails to revive USD demand.
• Strong follow-through momentum required to confirm additional gains.
The GBP/USD pair quickly reversed an early NA session fall to 1.4015 level and has now recovered around 60-65 pips from session lows.
The British Pound was initially weighed down by today's disappointing UK construction PMI and the downfall accelerated during the early NA session, following the release of upbeat ADP report on the US private sector employment.
The ADP report-led US Dollar uptick turned out to be short-lived and the pair once again managed to attract some fresh buying interest ahead of the key 1.40 psychological mark.
The USD lost some additional ground following the release of slightly weaker than expected US ISM non-manufacturing PMI, coming in at 58.8 for March as compared to 59.5 reported in the previous month, and dovish comments by St. Louis Fed President James Bullard.
It, however, remains to be seen if bulls are able to maintain their dominant position or the up-move once again fizzles out ahead of the 1.4100 handle amid global risk-off environment, which tends to underpin the greenback's safe-haven appeal against the British Pound.
Technical levels to watch
Any further up-move beyond the 1.4100 mark is likely to confront strong resistance near the 1.4125-30 region, which if cleared might negate any near-term bearish bias. On the flip side, renewed weakness back below mid-1.4000s might continue to find some support near the 1.4015-10 area, which if broken could accelerate the slide towards 1.3965 strong horizontal support.
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