GBP/USD upside faltered ahead of 1.2500

The bullish note around the Sterling stays well and sound so far today, although GBP/USD seems to have run out of steam ahead of the key 1.2500 barrier.

GBP/USD offered post-ADP, Vlieghe

Spot manages well to stay in the upper bound of the daily range near the 1.2500 handle in spite of the better tone from the buck following a higher-than-expected ADP report.

In fact, the greenback pared earlier losses after the US private sector added 263K jobs during last month vs. 187K initially estimated and February’s 245K (revised from 298K).

In addition, GBP shed some ground following comments by BoE’s G.Vlieghe, who stressed that low rates are necessary as long as slack remains and inflation pressures stay depressed. Furthermore, Vleighe advocated for a later rate hike in detriment of a sooner (premature) one.

GBP/USD levels to consider

As of writing the pair is up 0.27% at 1.2475 facing the next hurdle at 1.2556 (high Apr.3) followed by 1.2598 (high Mar.28) and finally 1.2562 (high Mar.31). On the other hand, a breakdown of 1.2395 (20-day sma) would expose 1.2375 (low Mar.29) and then 1.2362 (50% Fibo of the March up move).