#GBPUSD @ 1.20415 An ease in the risk aversion theme has led to a rebound in the Cable. (Pivot Orderbook analysis)

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• An ease in the risk aversion theme has led to a rebound in the Cable.
• The Pound Sterling has recovered to near the 20-EMA around 1.2038.
• The formation of a Descending Triangle pattern indicates a consolidation broadly.

The pair currently trades last at 1.20415.

The previous day high was 1.2126 while the previous day low was 1.2002. The daily 38.2% Fib levels comes at 1.205, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2079, expected to provide resistance.

The GBP/USD pair is displaying a confident recovery after dropping to near 1.2005 in the early Asian session. The Cable has extended its rebound move to near 1.2034 but is expected to remain volatile as the overall sentiment is still risk-averse.

The US Dollar Index (DXY) has witnessed a correction to near 104.35 as the festive mood is keeping the asset inside the woods on a broader note. Also, the 10-year US Treasury yields have witnessed a gradual selling pressure to near 3.87%.

On an hourly scale, the Cable is auctioning in a Descending Triangle chart pattern, which indicates a volatility contraction. The Pound Sterling has sensed buying interest after dropping to near the horizontal support of the aforementioned chart pattern placed from December 22 low at 1.1992. While the downward-sloping trendline is plotted from December 19 high at 1.2242.

Cable has also challenged the 20-period Exponential Moving Average (EMA) at around 1.2038, which indicates that the short-term trend is turning bullish.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which indicates a consolidation head.

Should the Cable break above December 27 high at 1.2112, Pound Sterling bulls will drive the asset toward December 21 high at 1.2189 followed by December 19 high at 1.2242.

On the flip side, a decisive downside below December 22 low at 1.1992 will trigger a breakdown of the Descending Triangle and will drag the Cable toward November 29 low at 1.1940. A slippage below the latter will expose the Cable for more weakness toward November 30 low around 1.1900.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.204 at the time of writing. Pair opened at 1.2017 and is trading with a change of 0.19 % .

The pair is trading below its 20 Daily moving average @ 1.2176, above its 50 Daily moving average @ 1.1874 , above its 100 Daily moving average @ 1.1669 and below its 200 Daily moving average @ 1.2057

The previous day high was 1.2126 while the previous day low was 1.2002. The daily 38.2% Fib levels comes at 1.205, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2079, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.1971, 1.1925, 1.1847
• Pivot resistance is noted at 1.2094, 1.2172, 1.2218

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