#GBPUSD @ 1.12526 The pound remains steady above1.1220. (Pivot Orderbook analysis)

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• The pound remains steady above1.1220.
• Weak UK data and political uncertainty are weighing on the GBP.
• GBP/USD, approaching the tip of a triangle pattern.

The pair currently trades last at 1.12526.

The previous day high was 0.6356 while the previous day low was 0.6228. The daily 38.2% Fib levels comes at 0.6307, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6277, expected to provide support.

The pound failed on its assault to 1.1300 earlier on Friday, although the ensuing reversal has found support at 1.1220 and the pair picked up again to the 1.1250 area. The GBP/USD remains moderately positive on the day in track to regain the previous two day’s losses.

Retail consumption contracted by 1.4% in September, well above market expectations of a 0.5% decline, and was 6.9% lower from the same month last year, according to data reported by National Statistics released earlier on Friday.

The impact of these figures, which have confirmed fears of an upcoming recession in the UK and have been coupled with political uncertainty, as the Tory party hustles to find a replacement for Liz Truss, which has increased negative pressure on the pair.

From a technical point of view, the daily chart shows the pair approaching the tip of a symmetrical triangle pattern with trendline resistance at 1.1325, and the next potential resistance levels at 1.1430 (50-day SMA) ahead of October 4 and 5 highs at 1.1510.

On the downside, the base of the triangle lies now at 1.1080. Below here, bears might increase confidence and send the pair to 1.0920 (October 12 low) and then probably to 1.0540 (September 28 low)

Technical Levels: Supports and Resistances

GBPUSD currently trading at 0.6358 at the time of writing. Pair opened at 0.6281 and is trading with a change of 1.23 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6381, 50 SMA 0.6654, 100 SMA @ 0.6798 and 200 SMA @ 0.7014.

The previous day high was 0.6356 while the previous day low was 0.6228. The daily 38.2% Fib levels comes at 0.6307, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6277, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6221, 0.6161, 0.6093
• Pivot resistance is noted at 0.6349, 0.6416, 0.6476

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