The GBP/USD pair saw some support from positive UK data, with the final September S&P services and composite readings beating original forecasts. However, the report highlighted the weakness of the service sector despite the better-than-expected data. On the other hand, the US dollar experienced a slight decline after the release of the latest ADP employment report, which showed slower growth in September compared to previous months. Despite the slight decline, the US dollar remains at elevated levels, with bond yields near multi-year highs.
The GBP/USD pair, which had traded as low as 1.2040 earlier, rebounded to 1.2150 due to the combination of positive UK data and weaker-than-expected US data. However, the technical outlook for the pair remains weak, as it is trapped in a strong downtrend, below all three moving averages, and continues to print lower highs and lows. The 78.6% Fibonacci retracement level at 1.2089 may provide some support in the coming days, but there is potential for further downside towards 1.1804.
The next key driver for the GBP/USD pair is Friday’s US NFP report, which will likely impact the pair’s direction going into the weekend. Traders should also keep an eye on market-moving economic data and events using the DailyFX Calendar. Overall, the outlook for the British Pound remains uncertain, and traders are encouraged to monitor the market closely and consider various factors when making trading decisions.
Note: This summary does not include the concluding section of the article, which refers to contacting the author and a disclaimer from DailyFX.
