#GBPUSD @ 1.18411 has sensed selling interest after a less confident recovery to near 1.1850 amid the risk-off mood. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• GBP/USD has sensed selling interest after a less confident recovery to near 1.1850 amid the risk-off mood.
• Fed’s Powell has reiterated the need for bigger rates to bring down persistent US inflation.
• BoE Dhingra cited that overtightening poses a more material risk at this point.

The pair currently trades last at 1.18411.

The previous day high was 1.2065 while the previous day low was 1.1822. The daily 38.2% Fib levels comes at 1.1915, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1972, expected to provide resistance.

The GBP/USD pair is observing selling pressure around 1.1850 in the early Tokyo session after remaining sideways on Wednesday. The Cable might deliver sheer losses after surrendering the immediate support of 1.1800. The downside bias for the Cable looks favored as Federal Reserve (Fed) chair Jerome Powell has reiterated the need for bigger rates to bring down persistent United States inflation.

S&P500 futures are showing modest gains, however, the recovery move looks less confident, which could be capitalized as a selling opportunity by the market participants. The US Dollar Index (DXY) settled above 105.20 after a volatile day inspired by upbeat United States Employment data reported by Automatic Data Processing (ADP) agency.

The release of the fresh payrolls addition at 242K vs. the consensus of 200K and the prior release of 119K has confirmed that the US labor market is extremely tight and investors should be prepared to face the extreme stubbornness of inflation. It is highly expected that firms will offer higher wages to fetch talent onboard amid a shortage of labor. This will deliver more funds to households for disposal, which will increase resilience in overall consumer spending.

Also, upbeat Job Openings data added fuel to the fire. The economic data landed at 10.824 million vs. the consensus of 10.6K. Higher job openings demonstrate the overall demand, which is going to propel the Consumer Price Index (CPI).

Later this week, the official labor market data will be keenly watched by the street. As per the estimates, the US Nonfarm Payrolls (NFP) (Feb) is expected to land at 203K lower than the former bumper release of 517K.

On the United Kingdom front, falling odds of more restrictive monetary policy is expected to keep the Pound Sterling on the tenterhooks. Bank of England (BoE) policy maker Swati Dhingra warned against further interest rate increases by citing “Overtightening poses a more material risk at this point.” She further added, “Many tightening effects are yet to fully take hold.”

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1844 at the time of writing. Pair opened at 1.1828 and is trading with a change of 0.14 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.2036, 50 SMA 1.2136, 100 SMA @ 1.1997 and 200 SMA @ 1.1909.

The previous day high was 1.2065 while the previous day low was 1.1822. The daily 38.2% Fib levels comes at 1.1915, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1972, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.1745, 1.1661, 1.1501
• Pivot resistance is noted at 1.1988, 1.2148, 1.2231

[/s2If]
Join Our Telegram Group