GBP/USD keeps the red near mid-1.3800s, US ADP report eyed
• Struggles to build on momentum beyond the 1.3900 handle.
• A modest USD rebound/Brexit uncertainty prompts some selling.
• Traders eye ADP report/Fedspeaks for some fresh impetus.
The GBP/USD pair traded with a mild negative bias through the mid-European session and is currently placed at the lower end of its daily trading range.
The pair continued with its struggle to sustain/build on its momentum further beyond the 1.3900 handle and snapped four consecutive days of winning streak. Prolonged Brexit uncertainty kept the GBP bulls on the defensive, with a modest US Dollar recovery prompting some selling at higher levels.
Currently hovering near the 1.3860 region, around 50-day SMA, traders now look forward to the release of US private sector employment details - ADP report, for some fresh impetus. Also in focus would be the FOMC members Bostic and Dudley's scheduled speeches, which might influence Fed rate hike expectations and influence the USD price dynamics.
Technical levels to watch
Immediate support is pegged near the 1.3830-25 region, below which the pair might turn vulnerable to break below the 1.3800 handle and head towards testing the 1.3765 strong horizontal support.
On the upside, the 1.3900-1.3910 region might continue to act as an immediate hurdle, which if cleared might trigger a short-covering rally towards its next major hurdle near the 1.3975-80 zone.