#GBPUSD @ 1.19790 turned negative after the release of the US ISM Manufacturing PMI. (Pivot Orderbook analysis)

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• GBP/USD turned negative after the release of the US ISM Manufacturing PMI.
• Fed’s Kashkari said he’s open to raising 25 or 50 bps.
• BoE Bailey commented that the BoE is not done hiking rates.

The pair currently trades last at 1.19790.

The previous day high was 1.2143 while the previous day low was 1.2027. The daily 38.2% Fib levels comes at 1.2071, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2099, expected to provide resistance.

GBP/USD is sliding, even though the market sentiment is upbeat on positive data from China. In addition, a Bank of England (BoE) official was more hawkish than expected, sponsoring a leg-up in the GBP/USD. At the time of writing, the GBP/USD exchanges hands at 1.2005, below its opening price by 0.15%.

Sentiment turned mixed in the session. Data from China revealed that manufacturing activity in the second-largest economy entered the expansionary territory, a tailwind for riskier assets. That boosted global equities, except for the United States (US), with the Dow Jones trading in the green while the S&P 500 and the Nasdaq fluctuated.

The GBP/USD has retreated some of its earlier gains due to Fed officials speaking, namely the Minnesota Fed President Neil Kashkari (voter). Kashkari said that in December, he thought that rates needed to go to 5.4% and hold, and added that he’s open at the next Fed meeting to increase rates 50 or 25 bps. He said that the risks of untightening are much more significant than overtightening.

The US ISM Manufacturing PMI came at 47.7, below 48.0 estimates, which sponsored a leg toward the daily low at 1.1990 before reclaiming 1.2000.

Although Kashakri’s comments weighed in the GBP/USD, an earlier BoE Governor Andrew Bailey’s speech capped the GBP/USD fall. Bailey commented that the BoE is not done with hiking rates and emphasized that BoE will inevitably need to do more. He added that further increases in the Bank Rate might be appropriate. Added that if the BoE falls short on rates, it will only have to do more later on.

On Brexit news, the Senior Democratic Unionist Party official, Charles Whip Wilson, said that the party is studying the deal’s details and would not make a knee-jerk decision on whether to accept it. Wilson said that was “an indication that the government knew this deal was not great and was trying to persuade unionists to accept it on the basis that we have great respect for the monarchy.”

Of late, the S&P Global Manufacturing PMIs for the US came at 47.3 vs. a previous reading of 47.9, and at around 15:00 GMT, the release of the ISM Manufacturing PMI would shed some light on the status of the US economy.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2012 at the time of writing. Pair opened at 1.2027 and is trading with a change of -0.12 % .

The pair is trading below its 20 Daily moving average @ 1.2079, below its 50 Daily moving average @ 1.2144 , above its 100 Daily moving average @ 1.1961 and above its 200 Daily moving average @ 1.1925

The previous day high was 1.2143 while the previous day low was 1.2027. The daily 38.2% Fib levels comes at 1.2071, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2099, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.1988, 1.1949, 1.1872
• Pivot resistance is noted at 1.2105, 1.2182, 1.2221

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