#GBPUSD @ 1.23886 bulls are in the market with eyes on the 1.24 area. (Pivot Orderbook analysis)

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• GBP/USD bulls are in the market with eyes on the 1.24 area.
• Traders will be turning to Friday’s key US inflation data.

The pair currently trades last at 1.23886.

The previous day high was 1.2362 while the previous day low was 1.2303. The daily 38.2% Fib levels comes at 1.2325, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2339, expected to provide support.

GBP/USD was last up 0.65% at 1.2391 having traveled between a low of 1.2293 and 1.2392 putting the pair on track for its biggest monthly gain since November, as concerns among investors over the banking sector dwi9ndled and dented the safe haven US Dollar.

The Great British Pound has climbed around 3% vs. the US Dollar in March and is penetrating its way through resistance to eight-week highs. Domestically, at more than 10%, headline inflation in Britain is showing no signs of slowing down. In this respect, money markets show traders now think rates will top out at 4.5% by September meaning the Bank of England likely has one more quarter-point rise planned.

´´The BoE is hoping for a quick decline in inflation in the course of the year,´´ analysts at Commerzbank explained. ´´So far, however, the economic data rather harbor upside risks for inflation. If inflation does turn out to be more persistent than the BoE expects, its rather dovish stance is likely to weigh further on the pound.´´

Meanwhile, traders will look to the February reading of personal consumption expenditures (PCE) on Friday. The data is the Fed’s preferred inflation gauge. January figures showed a sharp acceleration in consumer spending so the data will be closely eyed.

Today, US data showed that jobless claims last week rose more than expected from the week before indicating a cooling labor market, while fourth-quarter Gross Domestic Product growth was slightly lower at 2.6% compared with earlier estimates of 2.7%, both supporting the case for a softer Fed policy.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.239 at the time of writing. Pair opened at 1.2312 and is trading with a change of 0.63 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2127, 50 SMA 1.215, 100 SMA @ 1.2118 and 200 SMA @ 1.1894.

The previous day high was 1.2362 while the previous day low was 1.2303. The daily 38.2% Fib levels comes at 1.2325, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2339, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2289, 1.2267, 1.2231
• Pivot resistance is noted at 1.2348, 1.2384, 1.2407

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