GBP/USD Moves Higher Ahead Of U.S. ADP Employment Change Report

Key Insights

• U.S. dollar is under pressure as demand for safe-haven assets declines. 
• Today, traders will focus on the ADP Employment Change report from the U.S. 
• A successful test of the resistance at 1.3110 will push GBP/USD towards the next resistance at 1.3140.

British Pound Continues To Rebound Against U.S. Dollar

GBP/USD is currently trying to settle above the resistance at 1.3110, while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle below the support level at 98. If the U.S. Dollar Index declines below this level, it will move towards the next support at 97.75, which will be bullish for GBP/USD.

Today, foreign exchange market traders will focus on the economic data from the U.S. ADP Employment Change report is expected to show that private businesses added 450,000 jobs in March.

The final reading of the fourth-quarter GDP Growth Rate report is projected to show that GDP increased by 7.1% on a quarter-over-quarter basis.

Both reports could have a material impact on currency dynamics. Positive data will likely push the Fed to aggressively raise rates, which may provide more support to the American currency.

Technical Analysis

GBP/USD is testing the resistance level at 1.3110. If this test is successful, GBP/USD will move towards the next resistance, which is located at 1.3140. RSI is in the moderate territory, and there is plenty of room to gain upside momentum in case the right catalysts emerge.

In case GBP/USD settles above the resistance at 1.3140, it will head towards the next resistance level at the 20 EMA at 1.3175. A move above this level will open the way to the test of the resistance at 1.3200.

On the support side, a move below 1.3110 will push GBP/USD back towards the support level at 1.3080. In case GBP/USD manages to settle below this level, it will head towards the next support, which is located at the recent lows at 1.3050. A successful test of this level will push GBP/USD towards the support at 1.3030.

For a look at all of today’s economic events, check out our economic calendar.