GBP/USD extends the bounce to 1.2750, US ADP eyed

• Risk-on trades push pound higher, as safe-haven US dollar retreats.
• Will it sustain the bounce heading into the US ADP jobs report?

The GBP/USD broke to the upside from its Asian consolidation phase near the eleven-week trough, as the bulls re-attempt the 1.2750 barrier amid risk-off market profile.

The spot looks to extend the bounce above the midpoint of the 1.27 handle, as the bid tone around the higher-yielding pound strengthens amid a risk-on rally in the European equities. Also, a broad-based US dollar retreat from 2018 tops, in the wake of reduced demand for the safe-havens, aids the recovery in the Cable.

Further, markets consider no fresh Brexit-related news as good news that put a bid under the British currency while a lack of fresh economic drivers from the UK docket leaves the major at the mercy of the broader market sentiment.

“Later during the early North-American session, the US private sector employment details - ADP report, will influence the USD price dynamics and assist traders to grab some short-term opportunities,” FXStreet’s Analyst Haresh Menghani notes.

GBP/USD Technical levels

Resistance: 1.2783 (5-DMA), 1.2800 (round number). 1.2854/62 (Oct 29 high/ 10-DMA).

Support: 1.2697 (11-week low), 1.2663 (YTD low), 1.2589 (June 2017 low).