#GBPUSD @ 1.22365 is struggling to extend its recovery further as USD Index has shown signs of recovery. (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 is struggling to extend its recovery further as USD Index has shown signs of recovery.
• The promise of expansion of the emergency lending facility to small US banks has improved US Dollar’s appeal.
• Robust UK retail demand cements the continuation of the policy-tightening spell by the BoE.

The pair currently trades last at 1.22365.

The previous day high was 1.2292 while the previous day low was 1.2191. The daily 38.2% Fib levels comes at 1.223, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2253, expected to provide resistance.

The GBP/USD pair has surrendered its morning gains and has slipped to near 1.2230 in the Asian session. The Cable witnessed the heat after failing to climb above the immediate resistance of 1.2250 as the US Dollar Index (DXY) has shown some recovery after a gradual correction.

The USD Index has attempted a recovery move from 103.00 as the promise of providing more financial support to mid-size banks by the United States administration has infused confidence among market participants. Bloomberg reported that US authorities are considering an expansion of the emergency lending facility that would offer banks more support, and will provide the First Republic Bank more time to shore up its balance sheet.

S&P500 futures have loaded up some decent gains after a positive week on hopes that emergency lending support to mid-size banks will provide them room for more business. Also, more financial support to small US banks after declining deposits post-banking fiasco would help them to restore the confidence of households.

Meanwhile, contrary decisions from Federal Reserve (Fed) policymakers on the US recession are impacting the decision-making. Minneapolis Fed president Neel Kashkari cited on Sunday, “Recent stress in the banking sector and the possibility of a follow-on credit crunch brings the US closer to recession.

However, Atlanta Fed President Raphael Bostic told NPR on Friday that there are clear signs that the banking system is safe and resilient. And Fed Bostic is “Not expecting the economy to fall into recession.”

On the United Kingdom front, Pound Sterling remained in action on Friday after robust Retail Sales data. Monthly Retail Sales (Feb) data accelerated firmly by 1.2%, higher than the consensus of 0.2% and the former release of 0.9%. UK’s annual Retail Sales data contracted by 3.5% while the street was anticipating a contraction of 4.7%. This indicates that the rate-hiking spell by the Bank of England (BoE) will stay for a longer period.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2235 at the time of writing. Pair opened at 1.2233 and is trading with a change of 0.02 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2085, 50 SMA 1.2148, 100 SMA @ 1.2093 and 200 SMA @ 1.1893.

The previous day high was 1.2292 while the previous day low was 1.2191. The daily 38.2% Fib levels comes at 1.223, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2253, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2185, 1.2137, 1.2083
• Pivot resistance is noted at 1.2287, 1.234, 1.2388

[/s2If]
Join Our Telegram Group