#GBPUSD @ 1.24376 has witnessed a loss in the upside momentum and has dropped below 1.2440. (Pivot Orderbook analysis)

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• GBP/USD has witnessed a loss in the upside momentum and has dropped below 1.2440.
• The recovery move in the USD Index has scaled to near 101.80.
• The BoE would continue hiking rates further despite a more-than-anticipated contraction in UK Retail Sales.

The pair currently trades last at 1.24376.

The previous day high was 1.2448 while the previous day low was 1.2367. The daily 38.2% Fib levels comes at 1.2398, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2417, expected to provide support.

The GBP/USD pair has dropped below 1.2440 in the Asian session amid exhaustion in the Asian session. The Cable has faced some selling pressure as the US Dollar Index (DXY) has shown a recovery move after defending the critical support of 101.63.

S&P500 futures have added more losses in the Asian session amid anxiety among market participants ahead of quarterly results from technology giants. Amazon, Facebook, and Google will release their quarterly earnings this week. The street is worried about the impact of declining demand due to higher interest rates by the Federal Reserve (Fed) on their results.

Contrary to the recovery in the USD Index, US yields have dropped. The 10-year US Treasury yields have dropped to near 3.56%. The recovery move in the USD Index has scaled to near 101.80.

Going forward, a power-pack action is expected from the USD Index amid the release of the United States Durable Goods Orders data. A release of an upbeat demand for Durable Goods will strengthen core consumer inflation expectations and will also advocate for the announcement of consecutive 25 basis points (bps) rate hike from the Fed.

On the Pound Sterling front, further contraction in United Kingdom Retail Sales data failed to impact the odds of one more rate hike from the Bank of England (BoE). UK inflation is extremely stubborn and the BoE may not pause its policy-tightening spell.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2437 at the time of writing. Pair opened at 1.2441 and is trading with a change of -0.03 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2413, 50 SMA 1.221, 100 SMA @ 1.2198 and 200 SMA @ 1.1927.

The previous day high was 1.2448 while the previous day low was 1.2367. The daily 38.2% Fib levels comes at 1.2398, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2417, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.239, 1.2338, 1.2308
• Pivot resistance is noted at 1.2471, 1.25, 1.2552

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