GBP/USD sticks to daily gains near 1.3300 handle post-ADP

   •  ADP report boosts already stronger USD. 
   •  BoE rate hike prospects to limit sharp downslide. 
   •  ISM PMI and FOMC decision - next in focus.

The GBP/USD pair held on to its stronger UK manufacturing PMI-led gains and has a rather muted reaction to the US economic data.

The pair remained above the 1.3300 handle after the latest ADP report showed US private sector employment increased by 235K during the month of October, bettering expectations of 202K new jobs and 135K previous. 

The headline numbers might have lifted expectations from Friday's official jobs report (NFP) and eventually provided a minor boost to the US Dollar, but did little to dent the already strong sentiment surrounding the British Pound. 

The British Pound remained underpinned by firming expectations of a 25bps rate hike move by the Bank of England at Thursday's meeting and might continue to contribute towards limiting any sharp downslide, at least for the time being. 

Today’s US economic docket also features the release of ISM manufacturing PMI, while the key focus would remain on the key FOMC statement, which would be looked upon for fresh clues over December rate hike prospects. 

Technical levels to watch

Immediate support is pegged near 1.3270-65 area, below which the pair could slide back to 1.3230-25 horizontal support ahead of the 1.3200 handle.

On the upside, momentum beyond 1.3320 level (session tops) could get extended towards 1.3340-45 resistance before the pair eventually darts towards reclaiming the 1.3400 handle.