GBP/USD sellers attack 1.3300 ahead of US ADP Employment data, Fed Chair Powell’s Testimony

• GBP/USD remains on the back foot around weekly low, fades early Asian session rebound.
• UK PM Johnson backs Russian exclusion from SWIFT, US President Biden bans flights from Moscow in US airspace.
• BOE, Fed policymakers flash mixed signals over Russia-Ukraine jitter’s impact on next moves.
• Global markets remain sluggish, yields, stock futures pare recent losses, DXY stays firmer.

GBP/USD takes offers to refresh intraday low around 1.3310, down for the second consecutive day amid early Wednesday morning in Europe. In doing so, the cable pair portrays the mixed feelings in the market, as well as cautious optimism, ahead of the key US data/events.

Having witnessed a full show of risk-aversion due to the Russia-Ukraine crisis in the last two days, market sentiment prints inactivity. The reason could be linked to the mixed comments from US President Joe Biden during his first State of the Union (SOTU) speech, as well as hopes of overcoming the Russia-Ukraine crisis as the peace talks aren’t off the table yet.

US President Biden banned Russian flights from entering the US airspace due to Moscow’s invasion of Ukraine. On the positive side was Biden’s promotion of “self-reliance” and readiness to battle inflation with systematic steps.

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Russia ran deeper into Kyiv and remains hopeful to achieve its goal but UK PM Johnson said, "It's already clear Putin will ultimately fail in Ukraine." The national leader also said that they will do more to exclude Russian banks from the SWIFT system and freeze their assets.

It should be noted that the recent Russia-Ukraine tussles have already raised concerns that the global economic recovery from the pandemic will be slowed down, which in turn probes central bank hawks. However, the recent comments from the US Federal Reserve (Fed) and Bank of England (BOE) officials haven’t yet confirmed the same even if the money markets are paring back the hopes of faster policy tightening.

Elsewhere, the UK signs an £800 million post-Brexit trade deal with New Zealand but British farmers don’t like it.

That said, the GBP/USD pair traders will keep their eyes on the Russia-Ukraine headlines for fresh impulse. Also important is the US ADP Employment Change for February and Fed Chair Jerome Powell’s bi-annual testimony.

Technical analysis

A clear downside break of the two-month-old support line, now resistance around 1.3490, directs GBP/USD prices towards 78.6% Fibonacci retracement of December-January upside, near 1.3280. However, oversold RSI conditions may test the pair bears afterward.