GBP/USD snaps two-day losing streak, holds above 1.2600 ahead of US ADP data

GBP/USD gains ground on the renewed USD weakness.
US JOLTS labor data came in worse than expected, US ISM Services PMI arrived stronger than market expectation.
The markets are now almost fully priced in a first BoE rate cut by June 2024.

Lallalit Srijandorn FXStreet

The GBP/USD pair snaps the two-day losing streak and holds above the 1.2600 support level during the Asian trading hours on Wednesday. The modest decline of the US Dollar (USD) creates a tailwind for the pair. GBP/USD currently trades near 1.2607, gaining 0.11% on the day.

The US JOLTS labor data on Tuesday came in worse than expected. The US job openings data, as measured by the Job Openings and Labour Turnover Survey (JOLTS) dropped by 617,000 to 8.733M in October. The figure registered its lowest level since March 2021. The attention now shifts to November’s ADP job report on Wednesday, with an expected rise of 130K.

Additionally, the US ISM Services PMI for November grew to 52.7 from 51.8 in the previous reading, stronger than market expectation. The US employment data this week, including ADP Employment Change and Nonfarm Payrolls (NFP) will be in the spotlight as it could offer some hints about a further interest rate path. However, the market expects the Federal Reserve (Fed) to leave rates unchanged at its December meeting next week.

On the GBP’s front, the markets raise bets on an earlier start to interest rate cuts by the Bank of England (BoE). Financial markets are now almost fully priced in a first BoE rate cut by June 2024. BoE will release its monthly Financial Stability Report on Wednesday, providing investors with insight into how far the BoE is going towards a hawkish or dovish stance.

Traders will take more cues from the UK S&P Global/CIPS Construction PMI for November and the monthly Financial Stability Report. Also, the US ADP private employment and Unit Labor Cost data will be due later on Wednesday. These figures could give a clear direction to the GBP/USD pair.

(This story was corrected on December 6 at 09:37 GMT to say, in the first paragraph, that the GBP/USD pair trades at 1.2607, not 2607.)

GBP/USD

Overview
Today last price	1.2611
Today Daily Change	0.0017
Today Daily Change %	0.13
Today daily open	1.2594

Trends
Daily SMA20	1.2502
Daily SMA50	1.2315
Daily SMA100	1.2473
Daily SMA200	1.2477

Levels
Previous Daily High	1.2652
Previous Daily Low	1.2578
Previous Weekly High	1.2733
Previous Weekly Low	1.2591
Previous Monthly High	1.2733
Previous Monthly Low	1.2096
Daily Fibonacci 38.2%	1.2606
Daily Fibonacci 61.8%	1.2624
Daily Pivot Point S1	1.2563
Daily Pivot Point S2	1.2533
Daily Pivot Point S3	1.2489
Daily Pivot Point R1	1.2638
Daily Pivot Point R2	1.2683
Daily Pivot Point R3	1.2713

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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