GBP/USD Recovers Back Above 1.4500 handle
The GBP/USD
pair recovered from day’s through level of 1.4462 and moved back above
1.4500 level on disappointing employment number from the US ADP report.
According
to the ADP report, release a short while ago, US private sector
employment increased by 156,000 jobs in April, which was much lower than
consensus estimates of 205,000 jobs. The April number is the lowest
rise in private sector jobs since Feb. 2014. ADP report provides an
early estimate for the official jobs report, scheduled for release on
Friday, and hence, might now cap any further recovery in the US Dollar.
The
GBP/USD pair has rebounded from 38.2% Fibonacci retracement level
support of 1.4009-1.4770 upswing and hence, a move back above day’s peak
of 1.4572 might continue boosting the pair.
Technical levels to watch
On
a sustained trade above 1.4570, the pair seems to immediately head
towards 23.6% Fibonacci retracement level resistance near 1.4590-1.4600
round figure mark. A strong momentum might continue to push the pair
higher towards 1.4670 strong resistance.
On the downside,
weakness back below 1.4500 handle now seems to provide the required
momentum to drag the pair below 38.2% Fibonacci retracement level
support near 1.4480, towards testing an important support confluence
near 1.4385-80 area, comprising of 50% Fibonacci retracement level and
20-day SMA.
