#GBPUSD @ 1.18415 GBPUSD ticks high on strong UK inflation prints for October. (Pivot Orderbook analysis)

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• GBPUSD ticks high on strong UK inflation prints for October.
• UK’s CPI jumps to 11.1% YoY, Core CPI reprints 6.5% figures.
• Recovery in market sentiment adds strength to the upside momentum ahead of US Retail Sales.

The pair currently trades last at 1.18415.

The previous day high was 1.2029 while the previous day low was 1.1741. The daily 38.2% Fib levels comes at 1.1919, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1851, expected to provide resistance.

GBPUSD picks up bids to 1.1880 as the pair buyers cheer upbeat prints of the UK inflation numbers during early Wednesday. Also keeping the Cable pair buyers is the latest shift in the market’s mood and the US Dollar’s weakness ahead of the key US Retail Sales data.

The UK’s headline inflation number, namely the Consumer Price Index (CPI) rose to 11.1% YoY versus 10.7% expected and 10.1% prior whereas the Core CPI reprinted the 6.5% mark versus the forecasts of 6.4%.

Also read: Breaking: UK annualized inflation jumps to 11.1% in October vs.10.7% expected

Other than the British inflation numbers, a shift in the market’s mood also favored the GBPUSD buyers. Late on Tuesday, the news that Russian-made rockets were fired at Poland and killed two people triggered the risk-off mood. The same triggered emergency meetings of the North Atlantic Treaty Organization (NATO) and the Group of Seven (G7), which in turn favored the US Dollar (USD) due to its safe-haven appeal. However, the latest news shared by the Associated Press (AP) quoted an anonymous US official’s findings while mentioning that the missile may have been fired by Ukraine. As a result, the risk aversion ebbed and the greenback reversed the early-day gains at the latest.

Against this backdrop, the US stock futures are again mildly positive, reversing the initial losses, whereas the US 10-year Treasury yields snap a two-day downtrend near 3.82% as we write.

Having witnessed the initial reaction to the UK inflation numbers, the GBPUSD pair traders should pay attention to the US Retail Sales for October, expected to post 1.0% growth versus 0.0% prior. Should the key consumer-centric data match the upbeat forecasts, the US Dollar may portray recovery moves amid the latest rebound in the Treasury yields.

Also read: US October Retail Sales Preview: US Dollar unlikely to find reprieve

Although overbought RSI conditions and a downward-sloping resistance line from June, around 1.2030 by the press time, challenge the GBPUSD buyers, successful trading beyond the 100-DMA level surrounding 1.1650 keeps the bulls hopeful.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.188 at the time of writing. Pair opened at 1.1862 and is trading with a change of 0.15% % .

The pair is trading above its 20 Daily moving average @ 1.1488, above its 50 Daily moving average @ 1.1349 , above its 100 Daily moving average @ 1.1652 and below its 200 Daily moving average @ 1.2249

The previous day high was 1.2029 while the previous day low was 1.1741. The daily 38.2% Fib levels comes at 1.1919, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1851, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.1726, 1.1589, 1.1438
• Pivot resistance is noted at 1.2014, 1.2165, 1.2302

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