#GBPUSD @ 1.24109 is steadily oscillating above 1.2400 after a recovery move as USD Index has corrected to near 101.40. (Pivot Orderbook analysis)

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• GBP/USD is steadily oscillating above 1.2400 after a recovery move as USD Index has corrected to near 101.40.
• Upbeat US GDP and forward demand for Durable Goods have trimmed recession fears.
• UK FM Jeremy Hunt cited that tough decision taken by the administration in the autumn budget created a base for declining inflation.

The pair currently trades last at 1.24109.

The previous day high was 1.24 while the previous day low was 1.2283. The daily 38.2% Fib levels comes at 1.2355, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2328, expected to provide support.

The GBP/USD pair has shifted its auction profile above 1.2400 in the early Asian session after a recovery move from below 1.2350 on Thursday. The Cable has witnessed a decent buying interest as the US Dollar Index (DXY) has extended its correction to near 101.40.

Half of the gains recorded by the USD Index on Thursday after the release of the upbeat United States Gross Domestic Product (GDP) and Durable Goods Orders data were surrendered amid overall optimism in the market. S&P500 settled Thursday’s trading session with significant gains as upbeat GDP data trims recession fears dramatically. Also, upbeat economic data trimmed demand for US government bonds, which led to a recovery in the 10-year US Treasury yields to above 3.50%.

The US GDP for the fourth quarter of CY2022 landed at 2.9% higher than the expectations of 2.6% but lower than the former release of 3.2%. While Durable Goods Orders jumped to 5.6% against the expectations of 2.5% and the prior release of -1.7%. Upbeat forward demand for Durable Goods could accelerate core inflation projections, which could force the Federal Reserve (Fed) to drop the idea of 25 basis points (bps) interest rate hike in February and continue to hike interest rates by 50 bps as announced in December’s monetary policy meeting.

For further guidance, investors will keep an eye on the release of the Fed’s preferred inflation tool. The monthly core Personal Consumption Expenditure (PCE) Price Index (Dec) is expected to escalate to 0.3% from the former release of 0.2%.

On the Pound Sterling front, the United Kingdom office is preparing for a budget to be announced on March 15. Sunak’s Office said “The Prime Minister and Finance Minister Jeremy Hunt emphasized that the rate of inflation is only predicted to fall because of the tough decisions the Government had taken at the autumn statement to stabilize the economy,” reported Reuters.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2407 at the time of writing. Pair opened at 1.2398 and is trading with a change of 0.07 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2193, 50 SMA 1.2142, 100 SMA @ 1.1749 and 200 SMA @ 1.1968.

The previous day high was 1.24 while the previous day low was 1.2283. The daily 38.2% Fib levels comes at 1.2355, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2328, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.232, 1.2243, 1.2203
• Pivot resistance is noted at 1.2437, 1.2477, 1.2554

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