GBP/USD unfazed by slight better ADP report, awaits Fed decision

The GBP/USD pair extended its range-bounce price-action and had a muted reaction to the release of US private sector employment report. 

Spot remained stuck closer to the top end of daily trading after the latest ADP report showed private sector employers added 177K news jobs during April. Although the reading was much lower than 263K reported in March but was slight better than 175K anticipated and remained supportive of the mildly positive sentiment surrounding the US Dollar. 

Earlier during European session, the pair has a similar muted reaction to upbeat UK construction PMI print as investors seemed reluctant to place any fresh bets ahead of the much-awaited FOMC decision, due later during the NY session.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes, "the short term picture indicates that the risk remains towards the upside, despite the absence of directional momentum, given that in the 4  hours chart, the price is developing around its 20 SMA, whilst technical indicators continue consolidating around their mid-lines. The mentioned low is the immediate support, while a break below it open doors for additional slides towards 1.2830. An unexpected positive surprise from the Fed could push the pair even lower, down to 1.2770, but sustainable declines beyond this last seem unlikely."

"Last week high of 1.2964 is the level to surpass to see the pair gather upward momentum and extend its advance up to 1.3000/10" she added.