GBP/USD holds 1.3500 as weak US ADP data undermines dollar strength

GBP/USD is maintaining position around the 1.3500 psychological level during Thursday's London session, supported by broad-based dollar weakness following disappointing US employment data. The US ADP private payrolls report showed only 89,000 jobs added in September, significantly below the expected 125,000, raising concerns about labor market resilience. Additionally, ongoing US government shutdown risks are weighing on dollar sentiment, with Treasury yields declining 8 basis points to 3.74%. Sterling found additional support from better-than-expected UK services PMI data at 53.2, indicating continued expansion. Technical indicators suggest GBP/USD has established firm support at 1.3480, with immediate resistance at 1.3530. The pair's momentum indicators remain positively aligned, with the RSI at 58 suggesting room for further upside. Traders are now positioning for Friday's official US Non-Farm Payrolls release, which could determine whether the pair can sustain levels above 1.3500.