#GBPUSD @ 1.24885 stays positive, aiming towards testing the 1.2500 figure. (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 stays positive, aiming towards testing the 1.2500 figure.
• FOMC’s minutes showed that participants expected to raise 50 bps, but the banking crisis, put a possible pause on the table.
• US Inflation dipped, but core CPI remained at the prior’s month levels.

The pair currently trades last at 1.24885.

The previous day high was 1.2457 while the previous day low was 1.2381. The daily 38.2% Fib levels comes at 1.2428, expected to provide support. Similarly, the daily 61.8% fib level is at 1.241, expected to provide support.

The GBP/USD advances after the release of the US Federal Reserve Open Market Committee (FOMC) minutes for the last meeting showed that officials discussed a possible pause in their tightening campaign. Therefore, the GBP/USD is trading at 1.2489 after hitting a daily low of 1.2398.

In the latest Fed monetary policy reunion, officials considered a pause after the failure of two regional banks amidst fears that further tightening could cause financial stress. Nevertheless, those participants and others agreed that actions taken by the Fed calmed worries in the banking sector. The measures taken by the Fed were similar to those of the Bank of England (BoE) after the bond turmoil due to the ex-PM Liz Truss’s mini-budget, given the backdrop, that supported a 25 bps rate hike by the Fed at their latest meeting.

Participants commented that inflation is still above the 2% goal and that inflation pressures were “abating at a pace sufficient to return inflation to 2% over time.” Some Fed members noted that they considered a 50-basis point increase if there was not a banking crisis. Furthermore, Fed policymakers observed, “that inflation remained much too high and that the labor market remained too tight.”

Earlier, an inflation report from the US revealed that headline CPI dropped from 6% in February to 5% annually. However, core inflation, which excludes food and energy, remained at 5.6% YoY, unchanged.

After snapping on Tuesday, four days of straight losses, the GBP/USD is poised to test the 1.2500 figure in the near term. Even though the 100-day EMA remains below the 200-day EMA, it’s about to cross over, cementing the case for the GBP bullish bias. Though a decisive break of 1.2500, the GBP/USD pair could rally and test the June 9 high at 1.2599, ahead of clearing 1.2600.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2486 at the time of writing. Pair opened at 1.2425 and is trading with a change of 0.49 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2317, 50 SMA 1.2158, 100 SMA @ 1.217 and 200 SMA @ 1.1906.

The previous day high was 1.2457 while the previous day low was 1.2381. The daily 38.2% Fib levels comes at 1.2428, expected to provide support. Similarly, the daily 61.8% fib level is at 1.241, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2385, 1.2344, 1.2308
• Pivot resistance is noted at 1.2461, 1.2497, 1.2537

[/s2If]
Join Our Telegram Group