- Risk-on trades push pound higher, as safe-haven US dollar retreats.
- Will it sustain the bounce heading into the US ADP jobs report?
The GBP/USD broke to the upside from its Asian consolidation phase near the eleven-week trough, as the bulls re-attempt the 1.2750 barrier amid risk-off market profile.
The spot looks to extend the bounce above the midpoint of the 1.27 handle, as the bid tone around the higher-yielding pound strengthens amid a risk-on rally in the European equities. Also, a broad-based US dollar retreat from 2018 tops, in the wake of reduced demand for the safe-havens, aids the recovery in the Cable.
Further, markets consider no fresh Brexit-related news as good news that put a bid under the British currency while a lack of fresh economic drivers from the UK docket leaves the major at the mercy of the broader market sentiment.
“Later during the early North-American session, the US private sector employment details – ADP report, will influence the USD price dynamics and assist traders to grab some short-term opportunities,” FXStreet’s Analyst Haresh Menghani notes.
GBP/USD Technical levels
Resistance: 1.2783 (5-DMA), 1.2800 (round number). 1.2854/62 (Oct 29 high/ 10-DMA).
Support: 1.2697 (11-week low), 1.2663 (YTD low), 1.2589 (June 2017 low).
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