#GBPUSD @ 1.18594 GBPUSD stays defensive around three-month high, sidelined of late. (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 stays defensive around three-month high, sidelined of late.
• Anxiety ahead of UK’s key data, Autumn budget joins Poland-inspired sour sentiment to challenge traders.
• Downbeat US data, hawkish expectations from BOE keep buyers hopeful.

The pair currently trades last at 1.18594.

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 support.

GBPUSD seesaws around 1.1870 as it tries to defend the bulls despite reversing from a three-month high during early Wednesday morning in Europe. The Cable pair’s latest inaction could be linked to the mixed feelings surrounding Russia and the cautious mood ahead of the key data from the UK and the US.

Indecision over Russian missiles struck at the Polish border with Ukraine recently challenged the market’s sentiment and the GBPUSD traders. Following the missile fire, which killed two people, policymakers from the North Atlantic Treaty Organization (NATO) and the Group of Seven Nations (G7) called an emergency meeting. However, US President Joe Biden recently mentioned that based on the trajectory, it is unlikely that missiles were fired from Russia.

It should be noted that the downbeat employment data from the UK failed to tame the GBPUSD bulls amid the softer US Producer Price Index (PPI). That said, UK’s Claimant Count Change increased to 3.3K versus -12.6K forecasts and 25.5K prior whereas the Unemployment Rate rose to 3.6% while surpassing the market consensus and prior readings of 3.5%. On the other hand, US PPI for October eased to 8.0% YoY versus market forecasts of 8.3% and the downwardly revised prior of 8.4%. It’s worth noting that the monthly figure reprinted the 0.2% prior (revised from 0.4%) while easing below 0.5% expectations. Moreover, the Federal Reserve Bank of New York’s Empire State Manufacturing Index jumped to 4.5 in November from -9.1 in October and the market expectation of -5.

On a different page, fears of more burden on the households due to the UK’s upcoming Autumn Statement, up for publishing on Thursday, joins the likely uptick in the US Retail Sales for October, expected 1.0% versus 0.0% prior, keeps the GBPUSD bears hopeful. However, UK Prime Minister (PM) Rishi Sunak’s recent diplomatic moves have been suggesting a positive surprise and can fuel the Cable price should today’s British Consumer Price Index (CPI) match the upbeat 10.7% YoY forecasts for October, versus 10.1% prior.

While portraying the mood, Wall Street closed with smaller gains than the early-day moves while the US 10-year Treasury yields struggle at a six-week low. That said, the S&P 500 Futures retreated from the monthly high.

To sum up, GBPUSD buyers are likely to witness further upside momentum should the scheduled data/events match the market consensus.

GBPUSD retreats from a downward-sloping resistance line from June 15 amid a nearly overbought RSI. However, the bullish MACD signals and the sustained trading beyond the 100-DMA suggest the pair’s further advances.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.187 at the time of writing. Pair opened at 1.1862 and is trading with a change of 0.07% % .

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 support.

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

[/s2If]
Join Our Telegram Group