#GBPUSD @ 1.20055 bears are moving in near the lows of the day. (Pivot Orderbook analysis)

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• GBP/USD bears are moving in near the lows of the day.
• The British Pound is under pressure due to a series of bearish data for the currency.

The pair currently trades last at 1.20055.

The previous day high was 1.227 while the previous day low was 1.2118. The daily 38.2% Fib levels comes at 1.2212, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2176, expected to provide resistance.

GBP/USD is back under pressure in midday US trade after a series of data has kept a lid on attempts to correct the major sell-off that ensued following a round of negative data for cable. At the time of writing, GBP/USD is trading at 1.2005 and down 1.35%, pressured within the day’s range of between 1.1989 and 1.2181, retreating from near two-week lows and on course for its sharpest one-day decline this month.

The pair has moved lower to break a seven-day rally against the euro, after a bigger-than-expected drop in UK inflation in January has led investors to believe that the Bank of England might curtail its interest rate hiking cycle. Inflation decelerated to an annual rate of 10.1% in January from 10.5% in December, compared to expectations of 10.3% in a Wall Street Journal survey of analysts.

Then to rub salt in the bull’s wounds, the US Dollar climbed to a six-week high against a currency basket on Wednesday after hotter-than-expected US Retail Sales data last month that followed high Consumer Price Index data the prior day. Year-on-year, Retail Sales prices rose 6.4%. That was down from 6.5% in December but above economists’ expectations of 6.2%Retail Sales rose 3% in January, easily topping the 1.8% estimate, the Commerce Department reported Wednesday.

”Today’s US Retail Sales data release support risks that the Federal Reserve will have to work harder to curtail demand and bring inflation under control,” analysts at Rabobank said.

Investors are starting to have second thoughts as to whether there will be cuts in 2023. Rates currently stand at 4.5% to 4.75% but Fed board members’ median projection foresaw interest rates peaking at 5.1% this year. However, interest rate futures markets have still priced a peak above 5.2%, based on late Tuesday’s prices.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2005 at the time of writing. Pair opened at 1.2177 and is trading with a change of -1.41 % .

The pair is trading below its 20 Daily moving average @ 1.2249, below its 50 Daily moving average @ 1.2186 , above its 100 Daily moving average @ 1.1874 and above its 200 Daily moving average @ 1.1943

The previous day high was 1.227 while the previous day low was 1.2118. The daily 38.2% Fib levels comes at 1.2212, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2176, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2107, 1.2036, 1.1954
• Pivot resistance is noted at 1.2259, 1.234, 1.2411

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