- GBP/USD recovery attempts are likely to encounter strong resistance at 1.2600.
- The weak ADP report failed to affect the US dollar.
- The pair is under pressure after confirming a double top at 1.2730.
The GBP/USD pair tries to regain ground during the European session after bouncing from daily lows at 1.2540, although the 1.2600 level looks like a tough resistance zone.
Sterling bears remain in control after the pair accelerated its reversal from three-month highs above 1.2700 on Thursday. Sour market sentiment over fears of a global economic slowdown in 2024 is offering support to the safe-haven US dollar.
The weaker-than-expected US ADP jobs report failed to dent confidence in the Dollar, which is heading for a significant recovery this week, as expectations of monetary easing spread to most main central banks in the world. Investors now await Friday’s nonfarm payrolls report for more data on the U.S. labor market.
In the UK, BoE Governor Andrew Bailey maintained the need to keep interest rates at current levels for some time, although he cited risks to financial stability and noted challenges to the global economy from uncertainty. about China.
The technical outlook is bearish. Below 1.2600, the pair has confirmed a double top pattern at 1.2730, increasing negative pressure towards 1.2517 and 1.2460.
Technical levels to monitor
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
