GBP/USD: bearish below 1.2500, but...bears are nervous here

Currently, GBP/USD is trading at 1.2415, up 0.74% on the day, having posted a daily high at 1.2434 and low at 1.2270.

GBP/USD has been bid from 1.2200 to aforementioned highs, taking advantage of mixed data from the US session today ahead of the nonfarm payrolls showdown tomorrow.

The ADP report released on Thursday showed that the US private sector employers only added 153K new jobs in December missing the previous 215K jobs reported last month and 170K expected - if this is a prelude to nonfarm payrolls, then that is a negative for the greenback. Friday's official NFP print, which is expected to show addition of 175K new jobs in December. Worth noting, Kit Juckes, economist at Societe Generale said, "We'd like to stay short GBP/USD as long as we don't get back to 1.25 or so..."

United States Markit PMI Composite climbed from previous 53.7 to 54.1 in December

GBP/USD levels

Current price is 1.2415, with resistance ahead at 1.2434 (Daily High), 1.2434 (Daily Classic R2), 1.2494 (Weekly Classic R2), 1.2514 (Daily Classic R3) and 1.2599 (Weekly Classic R3). Next support to the downside can be found at 1.2410 (Weekly Classic R1), 1.2380 (Daily Classic R1), 1.2360 (Daily 20 SMA), 1.2355 (Yesterday's High) and 1.2325 (Weekly High).