#GBPUSD @ 1.12813 A minor rebound in risk-off impulse has dragged the cable below 1.1300. (Pivot Orderbook analysis)

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• A minor rebound in risk-off impulse has dragged the cable below 1.1300.
• The DXY has reclaimed the critical resistance of 112.00.
• A symmetrical triangle formation indicates a consolidation head.

The pair currently trades last at 1.12813.

The previous day high was 1.1409 while the previous day low was 1.1258. The daily 38.2% Fib levels comes at 1.1316, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1352, expected to provide resistance.

The GBP/USD pair has witnessed mild selling pressure and has dropped below the critical support of 1.1300 in the early European session. A soft decline in the S&P500 futures has delivered a rebound in the risk-off profile. The US dollar index (DXY) has reclaimed the critical resistance of 112.00 and has also delivered an upside break of the morning consolidation range.

On an hourly scale, the cable is oscillating in a Symmetrical Triangle chart pattern that signals a volatility contraction. The upward-sloping trendline of the chart pattern is placed from October 12 low at 1.0924 while the downward-sloping trendline is plotted from October 5 high at 1.1496.

The 50-period Exponential Moving Average (EMA) at 1.1291 is overlapping with the asset, which indicated a rangebound structure.

Also, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which indicates the unavailability of a potential trigger.

Going forward, an upside break of October 17 high at 1.1440 will drive the cable towards September 14 high at 1.1590, followed by September 13 high at 1.1738.

On the flip side, a drop below Friday’s low at 1.1060 will drag the asset toward the psychological support of 1.1000. If cable surrenders the psychological support, it will expose to more downside towards October 12 low at 1.0924.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1278 at the time of writing. Pair opened at 1.128 and is trading with a change of -0.02 % .

The pair is trading above its 20 Daily moving average @ 1.118, below its 50 Daily moving average @ 1.1413 , below its 100 Daily moving average @ 1.1771 and below its 200 Daily moving average @ 1.2407

The previous day high was 1.1409 while the previous day low was 1.1258. The daily 38.2% Fib levels comes at 1.1316, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1352, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.1222, 1.1165, 1.1071
• Pivot resistance is noted at 1.1373, 1.1467, 1.1524

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