#GBPUSD @ 1.18856 GBPUSD bounces off intraday low but snaps two-day uptrend., @nehcap view: Further weakness expected (Pivot Orderbook analysis)

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• GBPUSD bounces off intraday low but snaps two-day uptrend.
• Bearish RSI divergence, lower-high formation teases sellers.
• Weekly support line, 100-HMA challenges immediate downside.

The pair currently trades last at 1.18856.

The previous day high was 1.1942 while the previous day low was 1.1832. The daily 38.2% Fib levels comes at 1.19, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1874, expected to provide support.

GBPUSD pares the first daily loss in three around 1.1880 heading into Thursday’s London open. In doing so, the Cable pair bounces off the intraday low but stays on the seller’s radar while printing a bearish divergence on the Relative Strength Index (RSI) placed at 14.

The higher-low on prices don’t accompany the RSI conditions and joins the three-day formation of lower highs to keep the GBPUSD bears hopeful as they await the UK’s Autumn Statement.

However, an upward-sloping trend line from the last Thursday restricts the quote’s immediate downside to around 1.1860.

Following that, the 100-HMA level of 1.1817 could act as an extra downside filter before directing the GBPUSD sellers towards the 200-HMA surrounding 1.1645.

It’s worth noting that a two-week-old ascending trend line, around 1.1630 by the press time, could challenge the Cable pair’s weakness past 1.1645.

On the contrary, recovery moves need to cross the recent swing high of around 1.1925 to defy the lower-high formation and direct buyers toward the monthly peak of 1.2030.

In a case where GBPUSD remains firmer past 1.2030, the August month high near 1.2280 could gain the market’s attention.

Trend: Further weakness expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1886 at the time of writing. Pair opened at 1.1919 and is trading with a change of -0.28% % .

The pair is trading above its 20 Daily moving average @ 1.1523, above its 50 Daily moving average @ 1.1357 , above its 100 Daily moving average @ 1.165 and below its 200 Daily moving average @ 1.2241

The previous day high was 1.1942 while the previous day low was 1.1832. The daily 38.2% Fib levels comes at 1.19, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1874, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1853, 1.1787, 1.1742
• Pivot resistance is noted at 1.1964, 1.2008, 1.2075

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