GBP/USD rejected at 1.2500, slammed to 1.2420 ahead of ADP

The pound witnessed aggressive selling pressure last hour, despite the renewed uptick in oil prices, knocking-off GBP/USD to fresh daily lows.

GBP/USD: Eyes on US ADP, OPEC

The cable failed to sustain the rebound and fell sharply lower, eroding almost 80-pips from daily tops reached just ahead of 1.25 handle.

The main catalyst behind the latest drop in the major is the resurgence of EUR/GBP demand amid month-end flows, as the German central bank (Bundesbank) buys EUR/GBP for its UK EU membership fees.

However, the GBP/USD pair quickly moved-off lows and is now seen changing hands around 1.2435 levels, with the losses remain capped amid upbeat talks delivered by the BOE Governor Carney on the UK’s financial system. While higher oil prices amid renewed OPEC cut hopes also cushion the downside.

Markets now eagerly await a fresh batch of US macro data and OPEC decision for next direction on the major.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2500/02 (round number/ daily high), 1.2533 (Nov 28 high) and 1.2550 (daily R1). While supports are seen at 1.2400 (round figure) and 1.2375 (50-DMA) and below that at 1.2357 (Nov 23 low).