Cable jumps higher on weaker-than-expected US ADP payrolls

Cable surged to a fresh five-week high on Wednesday, initially supported by stronger-than-expected UK November services PMI, while a sharper-than-anticipated decline in US private payrolls (ADP report) fueled bets for a Fed rate cut in December, further boosting the pound.

The pair climbed roughly 0.8%, marking its largest single-day gain since late June. The rally breached 1.3295 resistance (Fibo 61.8% of 1.3471/1.3009 and 55DMA) and surpassed the 200DMA at 1.3319, approaching another key barrier at the base of the falling daily Ichimoku cloud.

Bulls may pause near these resistances, but the overall bias remains positive, supported by strong fundamentals and an improved technical picture on the daily chart. Today’s surge pushed the price above the upper boundary of the near-term bull channel, with momentum strengthening and a bullish Tenkan/Kijun-sen cross forming.

A daily close above the broken 1.3295 resistance would confirm a fresh bullish signal, while dips should ideally hold above the bull-channel upper boundary at 1.3263, offering attractive re-entry levels.

Breaking through the falling daily cloud would further solidify the near-term bullish structure, paving the way for a test of the 1.3360–1.3370 zone (Fibo 76.4% / Oct 24–28 highs) and eventually the cloud top at 1.3432.

Res: 1.3370;; 1.3400; 1.3432; 1.3471
Sup: 1.3295; 1.3263; 1.3240; 1.3198