The US Dollar could dominate the currency market if the DXY jumps higher. The ADP Non-Farm Employment Change came in better than expected. The indicator was reported higher at 568K in September versus 425K expected and compared to 340K reported in August.
The US is to release its NFP, Average Hourly Earnings, and the Unemployment Rate on Friday. Positive data could boost the USD.
Technically, the GBP/USD has reached a dynamic resistance represented by the warning line (wl1) where it has found resistance again.
The weekly pivot point of 1.3561 acts as a static support. Dropping and stabilizing under this level may activate a deeper drop. Actually, a new lower low, a bearish candle closed below 1.3543 could signal more declines.
Sell GBPUSD
Free forex signals service today is a sell on the GBP/USD pair. The pair has increased a little in the short term but the rebound seems over. The pair could resume its downwards movement if the Dollar Index approaches and reaches new highs. The bias remains bearish despite the last swing higher. A rebound was somehow expected after registering a massive drop.
Today, the UK Construction PMI dropped from 55.2 to 52.6 points far below 53.9 expected. This could be bad for the British Pound in the short term. Fundamentally, the USD is still strong after the US ISM Services PMI increased unexpectedly from 61.7 to 61.9 points even if the traders expected to see a potential drop to 59.9 points.
