GBPUSD is trading sideways on its hourly time frame, finding support at 1.3300 and moving closer to testing the resistance at the 1.3435 level once more. Technical indicators hint that the resistance is likely to hold.

If that’s the case, GBPUSD could slide back to the bottom of its range or perhaps attempt to break lower. The 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside, and the 200 SMA is just slightly above the range resistance to add another ceiling.

Stochastic has been indicating overbought conditions for a while, and the oscillator looks ready to turn lower to confirm a return in selling pressure. RSI has some room to head higher, so buyers could still take GBPUSD further up, but the oscillator is also near the overbought zone as well.

A breakout in either direction could set off a rally or selloff that’s the same height as the range or around 135 pips.

GBPUSD seems to be recovering from the earlier selloff due to risk-off flows from geopolitical tensions. However, the pair might give up more ground as leading US jobs indicators point to another upside NFP surprise.

The ADP non-farm employment change reading came out at a stronger than expected 475K gain versus the estimated 378K increase. To top it off, the earlier figure was upgraded to show a 509K jump in hiring.

Analysts expect the NFP to show a slightly slower increase of 407K in hiring versus the earlier 467K gain, which might still be enough to bring the jobless rate down from 4.0% to 3.9%.

Another factor working in favor of the dollar is its safe-haven appeal, as traders seem to prefer lower-yielding assets in times of uncertainty. Worsening tensions in Russia could prompt another flight to safety while the prospect of peace talks could spur profit-taking for the dollar.