#GBPUSD @ 1.26364 picks up bids to reverse the previous day’s pullback from the highest levels since April 2022. (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 reverse the previous day’s pullback from the highest levels since April 2022.
- UK inflation woes, Brexit optimism supersede Britain’s political disappointment to allow Cable buyers to retake control.
- US Dollar fails to cheer upbeat yields amid debt-ceiling woes, banking turmoil.
- White House talks on US debt ceiling expiration will be the key ahead of US, UK data, BoE.
The pair currently trades last at 1.26364.
The previous day high was 1.2669 while the previous day low was 1.2613. The daily 38.2% Fib levels comes at 1.2634, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2648, expected to provide resistance.
GBP/USD renews its intraday high near 1.2635 as it reverses the previous day’s corrective pullback from the multi-month top heading into Tuesday’s London open.
The Cable pair buyers took a breather amid the UK holiday on Monday, which in turn portrayed the quote’s retreat from the highest levels since April 2022. However, fresh optimism surrounding the Bank of England’s (BoE) optimism, coupled with the US Dollar’s failure to defend the latest gains, recall the Pound Sterling buyers.
In doing so, the quote ignores recently printed downbeat prints of the UK Halifax House Prices for April, down to -0.3% versus 0.2% market forecasts and 0.8% previous readings.
Elsewhere, The Guardian reports upbeat Brexit news and allows the GBP/USD to remain firmer. “EU leaders have signaled their desire to reset relations with the UK, seven turbulent years on from the seismic Brexit vote.”
On the same line is the Financial Times (FT) news saying, “The Bank of England (BoE) is set to raise interest rates to their highest level since 2008 on Thursday in the wake of official data last month that showed inflation remained stubbornly high.”
It should be noted that the political disappointment for the ruling Conservative Party in the UK’s local elections and the US Dollar’s corrective bounce amid firmer US Treasury bond yields challenge the GBP/USD bulls ahead of the key BoE and the US inflation numbers.
Before that, US President Joe Biden can propel the market moves as he braces to confront Republican House Speaker Kevin McCarthy, Republican Senate Minority Leader Mitch McConnell and top congressional Democrats at the White House on Tuesday for a debt-ceiling extension.
Should the US policymakers surprise markets with the positive outcome and a deal to avoid the US default, the recently upbeat US inflation expectations may help the GBP/USD pair to pare its latest gains near the multi-month high.
GBP/USD retreats from the 78.6% Fibonacci Expansion (FE) of its moves from April 03 to May 02 amid the overbought RSI (14) conditions. The same joins the quote’s inability to provide a daily closing beyond May 2022 peak surrounding 1.2665 to prod the Cable buyers.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2629 at the time of writing. Pair opened at 1.2619 and is trading with a change of 0.08% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2629 |
| 1 | Today Daily Change | 0.0010 |
| 2 | Today Daily Change % | 0.08% |
| 3 | Today daily open | 1.2619 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2487, 50 SMA 1.2313, 100 SMA @ 1.223 and 200 SMA @ 1.1952.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2487 |
| 1 | Daily SMA50 | 1.2313 |
| 2 | Daily SMA100 | 1.2230 |
| 3 | Daily SMA200 | 1.1952 |
The previous day high was 1.2669 while the previous day low was 1.2613. The daily 38.2% Fib levels comes at 1.2634, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2648, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.2598, 1.2578, 1.2542
- Pivot resistance is noted at 1.2654, 1.2689, 1.271
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2669 |
| Previous Daily Low | 1.2613 |
| Previous Weekly High | 1.2652 |
| Previous Weekly Low | 1.2436 |
| Previous Monthly High | 1.2584 |
| Previous Monthly Low | 1.2275 |
| Daily Fibonacci 38.2% | 1.2634 |
| Daily Fibonacci 61.8% | 1.2648 |
| Daily Pivot Point S1 | 1.2598 |
| Daily Pivot Point S2 | 1.2578 |
| Daily Pivot Point S3 | 1.2542 |
| Daily Pivot Point R1 | 1.2654 |
| Daily Pivot Point R2 | 1.2689 |
| Daily Pivot Point R3 | 1.2710 |
[/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
