‘ADP just served as a reminder of America’s rosier fundamentals, something that has been pushed off to the side with Washington dominating the spotlight.’ – Western Union Business Solutions (based on Business Recorder)
Despite a strong US ADP Employment Change reading on Wednesday, the Sterling still outperformed the US Dollar, successfully climbing over the 1.26 major level. Resistance was encountered only around 1.2675, where the 23.60% Fibo and the weekly R1 rest. This group of levels keeps providing relatively strong resistance today, which is likely to cause the Cable to undergo a small bearish correction—what usually occurs ahead of the Friday’s NFP data if the figures are anticipated to disappoint. As a result, the GBP/USD pair is expected to slide back down towards the 1.26 mark.
Although not as strong as yesterday, but market sentiment remains bullish at 59% (previously 63%). At the same time, the portion of orders to acquire the Pound inched down from 56 to 55%.