#GBPUSD @ 1.20618 attracts some buyers on Thursday amid a modest USD pullback from a multi-week top. (Pivot Orderbook analysis)

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• GBP/USD attracts some buyers on Thursday amid a modest USD pullback from a multi-week top.
• Retreating US bond yields weighs on the USD, though hawkish Fed expectations help limit losses.
• Speculations that the BoE’s rate-hiking cycle is nearing the end contribute to capping the major.

The pair currently trades last at 1.20618.

The previous day high was 1.2182 while the previous day low was 1.199. The daily 38.2% Fib levels comes at 1.2063, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2108, expected to provide resistance.

The GBP/USD pair gains some positive traction on Thursday and reverses a part of the previous day’s slide to levels just below the 1.2000 psychological mark, or over a one-week low. The pair sticks to its modest intraday gains through the first half of the European session and is currently placed just above mid-1.2000s, albeit lacks follow-through.

Retreating US Treasury bond yields trigger a modest US Dollar pullback from a six-week high touched on Wednesday, which, in turn, lends some support to the GBP/USD pair. That said, the prospects for further policy tightening by the Fed, along with looming recession risks, help limit the downside for the safe-haven Greenback. Apart from this, expectations that the Bank of England’s (BoE) current rate-hiking cycle is nearing the end contribute to keeping a lid on any meaningful upside for the major.

Investors seem convinced that the US central bank will stick to its hawkish stance and are now pricing in at least a 25 bps lift-off at the next two FOMC meetings in March and May. The bets were reaffirmed by the US CPI report on Tuesday and the recent comments by several FOMC officials, stressing the need for additional intrada rate hikes to fully gain control of inflation. This, in turn, might hold back traders from placing aggressive bearish bets around the USD and caps the GBP/USD pair.

In contrast, the softer-than-expected UK consumer inflation figures released on Wednesday ease pressure on the BoE to deliver aggressive rate hikes going forward. This further warrants some caution for the GBP/USD bulls and positioning for any further intraday appreciating move. Traders now look to the US economic docket – featuring the Philly Fed Manufacturing Index, the usual Weekly Initial Jobless Claims, Building Permits and Housing Starts – for some short-term opportunities.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2055 at the time of writing. Pair opened at 1.2034 and is trading with a change of 0.17 % .

The pair is trading below its 20 Daily moving average @ 1.2234, below its 50 Daily moving average @ 1.2183 , above its 100 Daily moving average @ 1.1885 and above its 200 Daily moving average @ 1.1942

The previous day high was 1.2182 while the previous day low was 1.199. The daily 38.2% Fib levels comes at 1.2063, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2108, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.1955, 1.1876, 1.1762
• Pivot resistance is noted at 1.2147, 1.2261, 1.2339

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