Forex Market: GBP/USD daily trading outlook

Yesterday’s trade saw GBP/USD within the range of 1.4196-1.4404. The pair closed at 1.4385, surging 0.88% on a daily basis. It has been the 29th gain in the past 62 trading days and also a second consecutive one. The daily high has been the highest level since March 21st, when a high of 1.4481 was recorded. GBP/USD has increased its advance to 3.46% so far during the current month.

At 6:15 GMT today GBP/USD was edging down 0.20% for the day to trade at 1.4230. The pair touched a daily high at 1.4404 at 6:10 GMT, while making an exact test of both yesterdays high and the daily R1 level, and a daily low at 1.4369 during the early phase of the Asian trading session.

On Wednesday GBP/USD trading may be influenced by the following macroeconomic report listed below.

Fundamentals

United States

Change in Employment by ADP

Employers in the US non-farm private sector probably added 194 000 new jobs during March, according to the median estimate by experts, following 214 000 new positions added in February.

Employment in the service-providing segment of the economy increased by 208 000 in February, while employment in the goods-producing sector rose by 5 000 positions. Business activities added 59 000 job positions, construction – 27 000, trade, transportation and utilities – 20 000 and financial activities – 8 000. On the other hand, employment in US manufacturing shrank by 9 000 positions during the same month.

The employment report by Automated Data Processing Inc. (ADP) is based on data that encompasses 400 000 – 500 000 companies employing over 24 million people, working in the 19 major sectors of the economy. The ADP employment change indicator is calculated in accordance with the same methodology, which the Bureau of Labor Statistics (BLS) uses. Published two days ahead of the governments employment statistics, this report is used by traders as a reliable predictor of the official non-farm payrolls data. Creation of jobs has a direct link to consumer spending, while the latter is a major driving force behind the US economic growth. In case new jobs growth outpaced expectations, this would have a moderate-to-strong bullish effect on the US dollar. The official figure is scheduled to be released at 12:15 GMT.

Daily and Weekly Pivot Levels

By employing the Camarilla calculation method, the daily pivot levels for GBP/USD are presented as follows:

R1 – 1.4404
R2 – 1.4423
R3 (range resistance) – 1.4442
R4 (range breakout) – 1.4499

S1 – 1.4366
S2 – 1.4347
S3 (range support) – 1.4328
S4 (range breakout) – 1.4271

By using the traditional method of calculation, the weekly pivot levels for GBP/USD are presented as follows:

Central Pivot Point – 1.4226
R1 – 1.4397
R2 – 1.4651
R3 – 1.4822

S1 – 1.3972
S2 – 1.3801
S3 – 1.3547