GBP/USD holds in the positive territory above 1.3900 after dismal US data

GBP/USD clings to small daily gains on Wednesday.
Private sector employment in US rose less than expected in July.
US Dollar Index stays near 92.00 ahead of US ISM data.

Eren Sengezer FXStreet

The GBP/USD pair continues to trade in a relatively tight range on Wednesday but manages to stay in the positive territory. As of writing, the pair was up 0.18% on the day at 1.3939.

USD struggles to find demand after ADP data

The data published by the Automatic Data Processing (ADP) Research Institute showed on Wednesday that employment in the US private sector rose by 330,000 in July. This reading missed the market expectation of 695,000 by a wide margin and made it difficult for the greenback to gather strength. At the moment, the US Dollar Index is posting small daily gains at 91.98.

Later in the session, the IHS Markit's and the ISM's Services PMI reports from the US will be looked upon for fresh impetus. However, ahead of the Bank of England's (BoE) monetary policy announcements on Thursday, GBP/USD's reaction is likely to remain muted.

Previewing the BoE event, "there are good reasons for the BOE to convey a cautious message on its August Super Thursday," said FXStreet analyst Yohay Elam. "That would weigh on GBP/USD but probably not for too long."

Bank of England Preview: Five reasons the doves are set to win Super Thursday, GBP/USD may dip.

Technical levels to watch for

GBP/USD

Overview
Today last price	1.393
Today Daily Change	0.0015
Today Daily Change %	0.11
Today daily open	1.3915

Trends
Daily SMA20	1.3822
Daily SMA50	1.3937
Daily SMA100	1.3924
Daily SMA200	1.3744

Levels
Previous Daily High	1.3939
Previous Daily Low	1.3882
Previous Weekly High	1.3984
Previous Weekly Low	1.3737
Previous Monthly High	1.3984
Previous Monthly Low	1.3572
Daily Fibonacci 38.2%	1.3917
Daily Fibonacci 61.8%	1.3903
Daily Pivot Point S1	1.3885
Daily Pivot Point S2	1.3855
Daily Pivot Point S3	1.3828
Daily Pivot Point R1	1.3942
Daily Pivot Point R2	1.3969
Daily Pivot Point R3	1.3999

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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