GBP/USD holds steady above mid-1.4100s post-ADP

Haresh Menghani FXStreet

The GBP/USD pair extended its steady climb from session lows and had a rather muted reaction to the ADP report.

The pair retreated around 15-pips, albeit quickly recovered back to the 1.4175-80 region, after the latest ADP National Employment Report showed that private-sector employers added 234,000 new jobs in January, down from December's 242,000 (revised lower).

The headline figure was much better than consensus estimates pointing to a reading of 185,000 but did little to improve the prevailing bearish sentiment surrounding the US Dollar.

Today's US economic docket also features the release of employment cost index, Chicago PMI and pending home sales, but again is likely to be overshadowed by pre-Fed repositioning trade.

Traders might continue to refrain from placing any fresh bets and prefer to wait on the sidelines ahead of the highly anticipated FOMC decision, due to be announced later during the NY trading session.

Technical levels to watch

On a sustained move beyond 1.4170 level, the pair is likely to head back towards reclaiming the 1.4200 handle before eventually darting towards 1.4235 supply zone. Alternatively, weakness back below the 1.4145-40 region might now turn the pair vulnerable to break below the 1.4100 handle and drop towards retesting 1.4045-40 support area.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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