#GBPUSD @ 1.23735 meets with some supply on Friday, though the downside remains cushioned. (Pivot Orderbook analysis)

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• GBP/USD meets with some supply on Friday, though the downside remains cushioned.
• A softer risk tone, rebounding US bond yields benefit the USD and weigh on the major.
• Traders eye the US PCE for some impetus ahead of key central bank meetings next week.

The pair currently trades last at 1.23735.

The previous day high was 1.243 while the previous day low was 1.2344. The daily 38.2% Fib levels comes at 1.2398, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2377, expected to provide resistance.

The GBP/USD pair continues with its struggle to find acceptance above the 1.2400 mark and comes under some selling pressure on the last day of the week. The pair remains on the defensive through the first half of the European session and is currently placed around the 1.2380-1.3375 region, just a few pips above the daily low.

A combination of factors lends support to the US Dollar, which, in turn, is seen exerting some downward pressure on the GBP/USD pair. The better-than-expected US growth figures released on Thursday fueled speculations that the Fed will maintain its hawkish stance for longer. This, in turn, leads to a goodish intraday move up in the US Treasury bond yields, which, along with a softer risk tone, benefits the safe-haven Greenback.

The USD, meanwhile, fails to attract any meaningful buying as investors still seem convinced that the Fed will soften its hawkish stance and deliver a smaller 25 bps next week. Moreover, speculations that elevated consumer inflation will force the Bank of England (BoE) to continue lifting rates offer some support to the British Pound. This, in turn, should help limit any meaningful downside for the GBP/USD pair, at least for now.

Traders also seem reluctant and prefer to wait for the release of the Fed’s preferred inflation gauge – the Core PCE Price Index. The data will play a key role in influencing the US central bank’s rate-hike path, which will drive the USD demand and provide some impetus to the GBP/USD pair. The focus, however, will remain glued to next week’s key central bank event risks – the FOMC policy decision on Wednesday and the BoE meeting on Thursday.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2379 at the time of writing. Pair opened at 1.2414 and is trading with a change of -0.28 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2211, 50 SMA 1.2153, 100 SMA @ 1.1758 and 200 SMA @ 1.1965.

The previous day high was 1.243 while the previous day low was 1.2344. The daily 38.2% Fib levels comes at 1.2398, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2377, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2362, 1.2311, 1.2277
• Pivot resistance is noted at 1.2448, 1.2482, 1.2534

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