#GBPUSD @ 1.15227 comes under renewed selling pressure on Thursday, though lacks follow-through. (Pivot Orderbook analysis)

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• GBP/USD comes under renewed selling pressure on Thursday, though lacks follow-through.
• Aggressive Fed rate hike bets revive the USD demand and exert some downward pressure.
• A positive risk tone caps the safe-haven buck and helps limit the downside for the major.

The pair currently trades last at 1.15227.

The previous day high was 1.159 while the previous day low was 1.148. The daily 38.2% Fib levels comes at 1.1548, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1522, expected to provide support.

The GBP/USD pair struggles to capitalize on the previous day’s modest uptick and meets with a fresh supply on Thursday. Spot prices remain on the defensive through the first half of the European session, though manage to hold above the 1.1500 psychological mark.

The US dollar catches fresh bids amid expectations for a more aggressive policy tightening by the Fed and turns out to be a key factor exerting some downward pressure on the GBP/USD pair. The stronger US consumer inflation data released on Tuesday all but confirmed that the Fed will hike interest rates at a faster pace. In fact, the implied odds for a full 1% lift-off at the September FOMC meeting currently stand at 30%.

Furthermore, the markets have been pricing in the possibility of another supersized Fed rate hike move in November. This remains supportive of elevated US Treasury bond yields and continues to underpin the greenback. That said, a generally positive risk tone is capping gains for the safe-haven buck. Apart from this, prospects for a 75 bps rate hike by the Bank of England on September 22 offer support to the GBP/USD pair.

This makes it prudent to wait for strong follow-through selling before positioning for an extension of the post-US CPI sharp retracement slide from a two-week high. In the absence of any relevant economic data from the UK, traders look forward to the US macro releases for some impetus later during the early North American session.

Thursday’s US economic docket features the release of monthly Retail Sales figures, Weekly Initial Jobless Claims, Regional Manufacturing Indices, and Industrial Production data. This, along with the US bond yields and the broader risk sentiment, will influence the USD and produce short-term trading opportunities around the GBP/USD pair.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1525 at the time of writing. Pair opened at 1.1541 and is trading with a change of -0.14 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.1658, 50 SMA 1.1895, 100 SMA @ 1.2128 and 200 SMA @ 1.2722.

The previous day high was 1.159 while the previous day low was 1.148. The daily 38.2% Fib levels comes at 1.1548, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1522, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1484, 1.1427, 1.1374
• Pivot resistance is noted at 1.1594, 1.1646, 1.1703

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