The Great Britain Pound (GBP) inched higher against the U.S. Dollar (USD) on Wednesday (August 04, 2021), increasing the price of the GBPUSD to more than 1.3900, ahead of the release of U.S. ADP Employment Change news.
Technical analysis
As of this writing, the GBPUSD strengthens around 1.3927. If the price keeps increasing, the pair might face some resistance near the listed price levels.
Short Term Resistance
1.3963 – the upper trendline arm.
1.4000 – the psychological number.
1.4025 – the high of February 26, 2021.
GBPUSD Daily Chart Source – MetaTrader4
On the downside, the pair might face some support near the listed price levels.
Short Term Support
1.3874 – the low of August 03, 2021.
1.3830 – the key horizontal support.
1.3800 – the psychological number.
US ADP employment change news
Automatic Data Processing, Inc, U.S, anticipates releasing numbers for the ADP employment change news today (August 04, 2021). According to an average estimate of economists, the U.S. ADP employment change news registered a reading of 695K in July, as compared to the reading of 692K in the month before.
The U.S. ADP employment change stats help economists to measure the change in the number of employed people in the US over the given period. Rising figures reflect positive implications for consumer spending and stimulate economic growth. Generally speaking, a high reading strengthens the U.S. Dollar (USD) and suggests a bearish trend for the GBPUSD pair and vice versa.
Conclusion
Given the price movements of the pair over the past few days, it may be a better option in the short term if the GBPUSD pair was bought at around 1.3874. Due to the volatile nature of the market, however, prices may change and lead to different outcomes.
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