GBP/USD makes fresh 3-week highs

GBP/USD stretched and hit fresh 3-week highs at the beginning of the New York session following the release of below expectations US employment data. 

Cable received another boost and reached a peak of 1.2353 before pulling back to pre-data levels around 1.2320. At time of writing, the pair is trading at 1.2321, recording a 0.67% gain on the day.

On the data front, ADP reported that US private-sector employment increased by 147,000 in October, below the 165,000 expected. However, September employment was upwardly revised to 202,000 from 154,000 initially estimated.

However, cautious mood might take over markets during the next few hours, limiting moves, as investors attention turns to FOMC decision later today (18:00 GMT), which will be followed by BoE policy meeting on Thursday. 

GBP/USD levels to watch

As for technical levels, immediate resistances could be found at 1.2371 (Oct 11 high), 1.2400 (psychological level) and 1.2442 (Oct 10 high). On the other hand, supports are seen at 1.2219 (Nov 2 low), 1.2200 (psychological level) and 1.2142 (Oct 31 low).