GBPUSD rallies hard following the release of the softer-than-expected US CPI report. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• GBPUSD rallies hard following the release of the softer-than-expected US CPI report.
• The headline US CPI decelerated to 7.7% and core CPI dropped to 6.3% in October.
• The data lifts bets for less aggressive Fed rate hikes and weighs heavily on the USD.

The pair currently trades last at 1.1404.

The previous day high was 1.1567 while the previous day low was 1.1334. The daily 38.2% Fib levels comes at 1.1423, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1478, expected to provide resistance.

The GBPUSD pair catches aggressive bids during the early North American session and rallies beyond the 1.1550 area in reaction to softer US consumer inflation figures.

The US Bureau of Labor Statistics reported that the headline CPI rose 0.4% in October and the yearly rate eased to 7.7% from 8.2% in September, both missing expectations. Additional details revealed that core inflation, which excludes food and energy prices, decelerated more than anticipated to a 6.3% YoY rate from 6.6% previous.

The data adds to speculations that the Federal Reserve will slow the pace of its policy tightening and drags the US Dollar to a fresh multi-week low. This, in turn, is seen as a key factor behind the GBPUSD pair’s sharp rally of over 170 pips in the last hour, taking along some intraday trading stops placed near the 1.1500 psychological mark.

It, however, remains to be seen if bulls are able to capitalize on the move amid a bleak outlook for the UK economy, which might continue to act as a headwind for the British Pound. Hence, the focus now shifts to the Priliminary UK Q3 GDP report, due on Friday. The key UK macro data should provide a fresh directional impetus to the GBPUSD pair.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.1404 at the time of writing. Pair opened at 1.1348 and is trading with a change of 0.49 % .

The pair is trading above its 20 Daily moving average @ 1.1388, above its 50 Daily moving average @ 1.1327 , below its 100 Daily moving average @ 1.167 and below its 200 Daily moving average @ 1.2284

The previous day high was 1.1567 while the previous day low was 1.1334. The daily 38.2% Fib levels comes at 1.1423, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1478, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.1266, 1.1183, 1.1033
• Pivot resistance is noted at 1.1499, 1.165, 1.1732

[/s2If]
Join Our Telegram Group