GBP/USD Recovers Back Above 1.4500 handle
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.