GBP/USD stalls 2-day rebound, back below 1.2400

After a brief period of overnight upside consolidation, the GBP/USD pair finally broke to the downside over last hours on the back of broad USD correction, after the recent weakness.

GBP/USD unable to survive above 1.2400

The cable is receding a part of two back-to-back sessions of gains, as broad USD selling appears to have stalled amid a bout of profit-taking ahead of the key US payrolls data.

Expectations for a better NFP report have dimmed after below estimates ADP jobs data published yesterday. The ADP employment change arrived at 153k versus 171k expected and 215k last. The private sector jobs report (ADP) is usually seen as a precursor to Friday’s US labour market report.

Meanwhile, nothing of relevance from the UK docket today should leave the major at the mercy of the USD dynamics and RO-RO trends.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2436 (2-week high), 1.2457 (50-DMA) and 1.2517 (100-DMA). While supports are seen at 1.2328 (5-DMA) and 1.2308 (10-DMA) and below that at 1.2267 (Dec 2 low).