#GBPUSD @ 1.24825 picks up bids to refresh intraday high, snaps two-day downtrend. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER 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_level1)]

• GBP/USD picks up bids to refresh intraday high, snaps two-day downtrend.
• White House Official blames Fed’s higher rates as having negative impact on banking.
• BoE versus Fed divergence allows Cable buyers to remain hopeful.
• US ADP Employment Change, PMIs can entertain traders ahead of the Fed’s verdict.

The pair currently trades last at 1.24825.

The previous day high was 1.2512 while the previous day low was 1.2436. The daily 38.2% Fib levels comes at 1.2465, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2483, expected to provide resistance.

GBP/USD takes the bids to renew intraday high near 1.2490 as it cheers the broad US Dollar weakness ahead of the key Federal Open Market Committee (FOMC) monetary policy meeting announcements. In doing so, the Cable pair buyers also cheer the latest doubts on the Fed’s capacity to further inflate the benchmark rates.

On Tuesday, a top White House (WH) Economist Heather Boushey, a member of the White House Council of Economic Advisers, told Reuters that the Fed is raising interest rates in the hope of reducing inflation. That is having this negative effect on the banking sector. “Why would we add to that?,” said WH Economist Heather Boushey.

On the same line, mixed US data and looming fears of US default, as well as a divergence between the Bank of England (BoE) and the Federal Reserve (Fed), also propel the GBP/USD prices.

That said, United States Factory Orders for March improved to 0.9% versus 0.8% expected and -1.1% (revised) previous readings. However, the US JOLTS Job Openings for the said month eased to 9.59M from 9.974M prior and 9.775M market forecasts. It’s worth noting that the easing of the US Gross Domestic Product (GDP) joined mixed ISM PMI details to prod the DXY bulls previously and favor the Cable pair buyers. However, upbeat inflation clues defend the Federal Reserve hawks, which in turn suggests the US central bank is all set for a 0.25% rate hike. As a result, traders are more interested in hearing about the Fed’s policy pivot, previously anticipated to take place in 2023, for clear GBP/USD guidance.

Elsewhere, the Bank of England’s (BoE) more than 10% inflation contradicts the comparatively sluggish inflation data from the US, which in turn adds strength to the GBP/USD upside.

Alternatively, fresh selling of PacWest Bancorp and Western Alliance Bancorp shares triggered banking fears across the board and prod the GBP/USD buyers. Additionally weighing on the market sentiment and challenging the Cable pair bulls could be the US policymakers’ struggle to avoid debt ceiling expiration, looming in June versus previous expectations of July expiry.

“Top US Senate Republicans on Tuesday called on President Joe Biden to accept their party’s debt-ceiling package or make a counter-offer, while a top Democrat said the Senate might try to advance a “clean” debt-ceiling hike next week,” said Reuters.

Against this backdrop, Wall Street closed in the red and the US Treasury bond yields also dropped whereas S&P 500 Futures also print mild losses at the latest.

Looking ahead, GBP/USD may keep cheering the US Dollar’s weakness ahead of the key US ADP Employment Change for April and the ISM Services PMI for the said month. However, major attention will be given to the Federal Reserve (Fed) announcements and the banking headlines for clear guidance.

Also read: FOMC Meeting Preview: Powell to keep every door open, surprises not out of the table after RBA

A five-week-old rising wedge keeps GBP/USD bears hopeful despite the pair’s latest recovery. However, a daily closing below the 1.2445 support line becomes necessary for the sellers to retake control.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2486 at the time of writing. Pair opened at 1.2467 and is trading with a change of 0.15% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2453, 50 SMA 1.2267, 100 SMA @ 1.2215 and 200 SMA @ 1.1944.

The previous day high was 1.2512 while the previous day low was 1.2436. The daily 38.2% Fib levels comes at 1.2465, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2483, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2431, 1.2395, 1.2355
• Pivot resistance is noted at 1.2508, 1.2548, 1.2584

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group