#GBPUSD @ 1.19491 edges higher for the third successive day on Friday amid the ongoing USD downfall. (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 edges higher for the third successive day on Friday amid the ongoing USD downfall.
• Reduced bets for a 50 bps Fed rate hike in March and sliding US bond yields weigh on the buck.
• The upbeat UK GDP print for January benefits the GBP and lends support ahead of the US NFP.

The pair currently trades last at 1.19491.

The previous day high was 1.1939 while the previous day low was 1.1832. The daily 38.2% Fib levels comes at 1.1898, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1873, expected to provide support.

The GBP/USD pair attracts some buyers during the early European session on Friday and climbs to a three-day high, around mid-1.1900s in reaction to the better-than-expected UK monthly GDP print.

The UK Office for National Statistics reported that the economy grew by 0.3% in January as compared to the 0.5% contraction recorded in the previous month and the 0.1% growth expected. This, to a larger extent, offsets the disappointing release of the UK Manufacturing and Industrial Production figures, which, in turn, is seen lending some support to the British Pound. Apart from this, the ongoing US Dollar retracement slide from a three-month low lends additional support to the GBP/USD pair.

A larger-than-expected rise in the US Weekly Jobless Claims was seen as the first sign of a softening labor market and forced investors to reassess the possibility of a 50 bps lift-off at the upcoming FOMC meeting on March 21-22. This is reinforced by a further pullback in the US Treasury bond yields and continues to weigh on the Greenback. The USD bulls, meanwhile, fail to gain any respite from the prevalent risk-off environment – as depicted by a sea of red across the global equity markets.

Traders, however, might refrain from placing aggressive bullish bets around the GBP/USD pair and positioning for an extension of this week’s recovery move from the 1.1800 mark, or a fresh YTD low ahead of the US NFP report. The closely-watched US monthly jobs data is due for release later during the early North American session and will play a key role in influencing the Fed’s policy outlook. This, in turn, will drive the USD demand and provide a fresh directional impetus to the major.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.193 at the time of writing. Pair opened at 1.1919 and is trading with a change of 0.09 % .

The pair is trading below its 20 Daily moving average @ 1.2015, below its 50 Daily moving average @ 1.213 , below its 100 Daily moving average @ 1.201 and above its 200 Daily moving average @ 1.1903

The previous day high was 1.1939 while the previous day low was 1.1832. The daily 38.2% Fib levels comes at 1.1898, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1873, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1854, 1.179, 1.1747
• Pivot resistance is noted at 1.1961, 1.2003, 1.2068

[/s2If]
Join Our Telegram Group