#GBPUSD @ 1.23245 is looking to surpass 1.2350 after a recovery move amid a risk-on market mood. (Pivot Orderbook analysis)

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• GBP/USD is looking to surpass 1.2350 after a recovery move amid a risk-on market mood.
• The USD Index has been weighed down by weaker US yields as the odds of a slowdown in the Fed’s policy tightening are solid.
• This week, the release of the US GDP data will be of utmost importance.

The pair currently trades last at 1.23245.

The previous day high was 1.2448 while the previous day low was 1.2324. The daily 38.2% Fib levels comes at 1.2371, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2401, expected to provide resistance.

The GBP/USD pair is looking to extend its recovery move above the immediate resistance of 1.2340 in the early Tokyo session. The Cable delivered a V-shape recovery on Tuesday after S&P reported better-than-projected preliminary United States PMI data (Jan). It seems that the street was expecting an upbeat performance and therefore supporting the US Dollar Index (DXY) earlier. But later on, dumped the USD Index as a ‘Buy on rumor and sell on news’ indicator was triggered.

S&P500 futures remained choppy on Tuesday and settled with a marginal loss. However, the 500-US stock basket futures have recovered their marginal loss now and portraying a recovery in the risk appetite theme. The return generated by the 10-year US government bonds slipped sharply to 3.45% as the odds of a slowdown in the pace of policy monetary policy tightening are extremely solid.

United States Manufacturing PMI landed at 46.8, higher than the expectations of 46.1 and the former release of 46.2. Also, the Services PMI remained upbeat and scaled higher to 46.6 against the consensus of 44.5 and the prior release of 44.7. The release of the better-than-anticipated US PMI has trimmed recession fears for a while.

For further guidance, investors will focus on the release of the preliminary US Gross Domestic Product (GDP), which is scheduled for Thursday. As per the projections, the annualized GDP is seen lower at 2.8% vs. the prior release of 3.2%. An expression of a contraction in overall economic activities might accelerate recession fears again on a broader basis.

On the United Kingdom front, investors are awaiting the release of the Producer Price Index (PPI) (Dec) data. As per the consensus, the core PPI output is seen higher at 13.9% vs. the former release of 13.3%. Shortage of labor and rising wages for addressing the former could be the reason behind rising prices of goods and services at factory gates.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2332 at the time of writing. Pair opened at 1.2373 and is trading with a change of -0.33 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2159, 50 SMA 1.2123, 100 SMA @ 1.1732 and 200 SMA @ 1.1975.

The previous day high was 1.2448 while the previous day low was 1.2324. The daily 38.2% Fib levels comes at 1.2371, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2401, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2315, 1.2257, 1.2191
• Pivot resistance is noted at 1.244, 1.2506, 1.2564

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