#GBPUSD @ 1.12613 A combination of factors prompts aggressive selling around on Friday. (Pivot Orderbook analysis)

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• A combination of factors prompts aggressive selling around GBP/USD on Friday.
• The UK political development weighs on sterling amid resurgent USD demand.
• The mixed US Retail Sales report does little to provide any meaningful impetus.

The pair currently trades last at 1.12613.

The previous day high was 1.1381 while the previous day low was 1.1058. The daily 38.2% Fib levels comes at 1.1257, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1181, expected to provide support.

The GBP/USD pair come under aggressive selling pressure on Friday and snaps a two-day winning streak to a one-week high touched the previous day. The intraday downfall is sponsored by a combination of factors, though spot prices show some resilience below the 1.1200 round-figure mark.

The British pound is pressured by the latest UK political developments, wherein reports confirmed that finance minister Kwasi Kwarteng has been sacked, making him the shortest-serving chancellor since 1970. This comes amid the emergence of aggressive US dollar buying, which, in turn, is seen exerting downward pressure on the GBP/USD pair.

The stronger US consumer inflation figures released on Thursday reaffirmed market expectations that the Fed will continue to tighten its monetary policy at a faster pace. In fact, the fed fund futures indicate a greater chance of another supersized 75 bps rate hike at the next FOMC meeting in November, which is seen underpinning the greenback.

The USD sticks to its strong intraday gains and seems unaffected by mixed US monthly Retail Sales data. The US Census Bureau reported that the headline sales were flat MoM in September, missing estimates, while sales excluding autos unexpectedly climbed by 0.1%. Furthermore, the previous month’s readings were also revised slightly higher.

That said, retreating US Treasury bond yields, along with signs of stability in the equity markets, hold back the USD bulls from placing aggressive bets. This, in turn, offers some support to the GBP/USD pair, at least for the time being. Traders now look to the Prelim Michigan US Consumer Sentiment and Inflation Expectations Index for a fresh impetus.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1206 at the time of writing. Pair opened at 1.1324 and is trading with a change of -1.04 % .

The pair is trading above its 20 Daily moving average @ 1.1151, below its 50 Daily moving average @ 1.1532 , below its 100 Daily moving average @ 1.1862 and below its 200 Daily moving average @ 1.249

The previous day high was 1.1381 while the previous day low was 1.1058. The daily 38.2% Fib levels comes at 1.1257, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1181, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1127, 1.0931, 1.0804
• Pivot resistance is noted at 1.1451, 1.1577, 1.1774

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