#GBPUSD @ 1.21894 US Consumer Sentiment improved, while inflation expectations edged lower. (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)]

• US Consumer Sentiment improved, while inflation expectations edged lower.
• UK’s GDP for the fourth quarter contracted and flashed a gloomy economic outlook.
• GBP/USD traders are eyeing UK CPI, Retail Sales, and US Retail Sales data.

The pair currently trades last at 1.21894.

The previous day high was 1.2247 while the previous day low was 1.2088. The daily 38.2% Fib levels comes at 1.2186, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2149, expected to provide support.

The Pound Sterling (GBP) slid slightly vs. the US Dollar (USD) Friday, following the release of the University of Michigan (UoM) Consumer Sentiment for January in the US, which exceeded estimates, while the poll showed that inflation expectations for one-year were downward revised. At the time of writing, the GBP/USD is trading at 1.2204 after hitting a daily low of 1.2150.

The GBP/USD languished late in the European session/early New York session after printing a four-week high. Data released on Thursday flashed that inflation in the United States (US) is indeed cooling down. With December’s Consumer Price Index (CPI) dropping beneath 7% and core CPI below 6%, spurring hopes that the US Federal Reserve would shift to lower-sized rate hikes, in the amount of 25 bps.

Later, the University of Michigan (UoM) revealed that Consumer sentiment for January was better than expected, with the reading hitting 64.6 vs. forecasts of 60.5. Americans estimate inflation for one year would edge to 4%, from December’s 4.4%, while estimates for five years uptick to 3%, from 2.9%.

In the UK, the Gross Domestic Product (GDP) on a monthly basis beat estimates, rising by 0.1%, while for a three-month changed was at -0.3%, cementing the case for a gloomy economic outlook.

Looking ahead to next week, the UK economic docket will feature labor market data, the Consumer Price Index, and Retail Sales. Across the pond, the US economic docket will unveil Retail Sales, US Housing Starts, Initial Jobless Claims, and Existing Home Sales.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2204 at the time of writing. Pair opened at 1.2214 and is trading with a change of -0.08 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2084, 50 SMA 1.202, 100 SMA @ 1.1683 and 200 SMA @ 1.2001.

The previous day high was 1.2247 while the previous day low was 1.2088. The daily 38.2% Fib levels comes at 1.2186, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2149, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.212, 1.2025, 1.1961
• Pivot resistance is noted at 1.2278, 1.2342, 1.2437

[/s2If]
Join Our Telegram Group