#GBPUSD @ 1.19851 The US Dollar strengthens as 2023 kicks in, as the US Dollar Index gains more than 1%. (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)]

• The US Dollar strengthens as 2023 kicks in, as the US Dollar Index gains more than 1%.
• US S&P Global PMI was unchanged, though it remained in contractionary territory.
• Manufacturing activity in the UK plunges for the fifth straight month, adding to recession fears in the UK.

The pair currently trades last at 1.19851.

The previous day high was 1.2102 while the previous day low was 1.2034. The daily 38.2% Fib levels comes at 1.206, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2076, expected to provide resistance.

The Pound Sterling (GBP) trimmed some of its earlier losses against the US Dollar (USD) after plunging to the 100-day Exponential Moving Average (EMA), hitting a daily low of 11899. Nevertheless, the bounce was short-lived, even though the GBP/USD climbed to the 1.2000 figure but remained negative in the day. At the time of writing, the GBP/USD is trading at 1.1985, below its opening price by 0.48%.

Wall Street edges lower as sentiment deteriorates. The US S&P Global Manufacturing PMI for December’s final reading was unchanged at 46.2. Siân Jones, Senior Economist at S&P Global Market Intelligence, said, “The manufacturing sector posted a weak performance as 2022 was brought to a close, as output and new orders contracted at sharper rates. Demand for goods dwindled as domestic orders and export sales dropped. Muted demand conditions also led to downward adjustments of stock holdings.”

Aside from this, Tuesday’s trading session witnessed the greenback’s resurgence. The US Dollar Index (DXY), a gauge of the buck’s value vs. a basket of six currencies, edges up 1.12% at 104.653, hitting new two-week highs, a headwind for the GBP/USD.

On the UK front, Manufacturing PMI, revelated by S&P Global/CIPS, dropped to a 31-month low of 45.3, continuing its downtrend, as it trailed November’s 46.5. should be said that the index has remained below the 50 neutral mark for five consecutive months. Delving into the report, output, new orders, employment, and inventories, decelerated.

Elsewhere, the US economic docket remains busy with the release of the Federal Reserve’s (Fed) last meeting minutes, alongside the ISM Manufacturing PMI Index for December. On the UK front, Mortgage Approvals and Lending would be revealed.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1991 at the time of writing. Pair opened at 1.2049 and is trading with a change of -0.48 % .

The pair is trading below its 20 Daily moving average @ 1.2151, above its 50 Daily moving average @ 1.1922 , above its 100 Daily moving average @ 1.1667 and below its 200 Daily moving average @ 1.2041

The previous day high was 1.2102 while the previous day low was 1.2034. The daily 38.2% Fib levels comes at 1.206, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2076, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2021, 1.1994, 1.1954
• Pivot resistance is noted at 1.2089, 1.2129, 1.2156

[/s2If]
Join Our Telegram Group