#GBPUSD @ 1.24126 has dropped below 1.2420 again amid a decent recovery in the USD Index. (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 dropped below 1.2420 again amid a decent recovery in the USD Index.
• The USD Index has been backed by China-Taiwan tensions and rising hopes of one more rate hike from the Fed.
• S&P500 futures have turned negative as investors are anxious about the quarterly earnings season.

The pair currently trades last at 1.24126.

The previous day high was 1.2456 while the previous day low was 1.2389. The daily 38.2% Fib levels comes at 1.2415, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.243, expected to provide resistance.

The GBP/USD pair has surrendered its entire gains generated in the early Asian session. The Cable has dropped back below 1.2420 as the US Dollar index (DXY) has extended its recovery to near 102.15. The USD Index has been backed by China-Taiwan tensions and rising hopes of one more rate hike from the Federal Reserve (Fed).

Meanwhile, S&P500 futures have turned negative after surrendering their entire gains as investors are confident about the recession in the United States economy. Also, investors are anxious about the initial quarterly earnings season of CY2023. Negative market sentiment has trimmed the appetite for risk-perceived assets. The return offered on 10-year US Treasury bonds has dropped below 3.38%.

Deepening China-Taiwan tensions after Taiwan received support from the US administration has triggered the risk-off mood. Taiwan Ministry has reported 58 Chinese aircrafts encircling Taiwan Island.

Friday’s sluggish US Nonfarm Payrolls (NFP) data and tight Unemployment Rate have backed one more rate hike from the Fed. Apart from that, monthly appreciation in Average Hourly Earnings has confirmed that households would remain equipped with higher funds for disposal, which might keep inflation elevated.

For detailed guidance, US Inflation data will be keenly watched, which is scheduled for Friday. According to the estimates, the headline Consumer Price Index (CPI) will decelerate to 5.2% from the former release of 6.0%. While the core CPI will inflate further to 5.6% from the prior release of 5.5%.

On the Pound Sterling front, United Kingdom markets will remain closed on account of Easter Monday. This week, Like for Like Sales data by the British Retail Consortium (BRC) will remain in focus. Food inflation is on an escalation spree, which could impact heavily on the pocket of UK households ahead. Also, a shortage of labor and a fresh jump in the oil price could pump UK inflation further.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2417 at the time of writing. Pair opened at 1.2418 and is trading with a change of -0.01 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2293, 50 SMA 1.2156, 100 SMA @ 1.2159 and 200 SMA @ 1.1902.

The previous day high was 1.2456 while the previous day low was 1.2389. The daily 38.2% Fib levels comes at 1.2415, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.243, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2386, 1.2354, 1.2319
• Pivot resistance is noted at 1.2453, 1.2488, 1.252

[/s2If]
Join Our Telegram Group