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GBP/USD: Bear grip loosens, spikes to 1.5213 and falls

FXStreet (Mumbai) - The bears finally appear to have loosened their grip on Sterling, allowing for a technical correction in the GBP/USD pair. The spot now trades around 1.52 levels.

Focus on the US ADP report

The immediate focus now is on the US monthly ADP report, which is expected to show the private sector added 190K jobs in September. Moreover, the ADP report in the last few months has received little attention from the markets, especially if the number is below estimates. On the other hand, a better-than-expected figure has pushed up expectations of a stronger NFP on Friday.

It remains to be seen if the markets continue this peculiar behaviour later today after the release of the ADP report. Meanwhile, the sentiment on the Wall Street later today could also affect the GBP/USD pair.

GBP/USD Technical Levels

The spot rose to a high of 1.5213 before falling back to 1.52 levels. The immediate resistance is located at 1.5219 (Sep 3 low), above which gains could be extended to 1.5248 (50% of Apr-Jun rally). On the other side, support is seen at 1.5170 (June 1 low) and 1.51 levels.

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