#GBPUSD @ 1.26224 oscillates in a narrow trading band for the second successive day on Wednesday. (Pivot Orderbook analysis)
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- GBP/USD oscillates in a narrow trading band for the second successive day on Wednesday.
- A softer risk tone lends support to the safe-haven USD and acts as a headwind for the pair.
- The downside seems limited ahead of the US CPI on Wednesday and the BoE on Thursday.
The pair currently trades last at 1.26224.
The previous day high was 1.264 while the previous day low was 1.2578. The daily 38.2% Fib levels comes at 1.2616, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2602, expected to provide support.
The GBP/USD pair extends its sideways consolidative price move for the second straight day and remains confined in a narrow trading band, above the 1.2600 mark through the first half of the European session on Wednesday.
A generally softer tone around the equity markets benefits the safe-haven US Dollar (USD), which, in turn, is seen as a key factor acting as a headwind for the GBP/USD pair. That said, growing acceptance that the Federal Reserve (Fed) is nearing the end of its year-long rate-hiking cycle is holding back the USD bulls from placing aggressive bets. Moreover, markets have started pricing in the possibility that the US central bank will start cutting rates later this year.
In contrast, the Bank of England (BoE) is widely anticipated to hike interest rates by 25 bps on Thursday, which continues to underpin the British Pound and contributes to limiting the downside for the GBP/USD pair, at least for the time being. Traders also seem reluctant to place aggressive bets and prefer to move to the sidelines ahead of the key data/event risks – the release of the US consumer inflation figures this Wednesday and the BoE meeting on Thursday.
The crucial US CPI report will play a key role in influencing market expectations about the Fed’s next policy move, which, in turn, should drive the USD demand in the near term. Apart from this, the highly-anticipated BoE decision should help investors to determine the next leg of a directional move for the GBP/USD pair. In the meantime, the divergent BoE-Fed expectations might continue to act as a tailwind for the major and warrant some caution for bearish traders.
From a technical perspective, the GBP/USD pair has been trending higher along a one-month-old ascending channel. This points to a well-established short-term bullish trend and supports prospects for a further near-term appreciating move for the GBP/USD pair. Hence, any meaningful corrective decline might still be seen as a buying opportunity and is likely to remain cushioned in the absence of any relevant market-moving data, either from the UK or the US.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2625 at the time of writing. Pair opened at 1.2621 and is trading with a change of 0.03 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2625 |
| 1 | Today Daily Change | 0.0004 |
| 2 | Today Daily Change % | 0.0300 |
| 3 | Today daily open | 1.2621 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2497, 50 SMA 1.2325, 100 SMA @ 1.2235 and 200 SMA @ 1.1954.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2497 |
| 1 | Daily SMA50 | 1.2325 |
| 2 | Daily SMA100 | 1.2235 |
| 3 | Daily SMA200 | 1.1954 |
The previous day high was 1.264 while the previous day low was 1.2578. The daily 38.2% Fib levels comes at 1.2616, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2602, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.2586, 1.2551, 1.2525
- Pivot resistance is noted at 1.2648, 1.2675, 1.2709
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2640 |
| Previous Daily Low | 1.2578 |
| Previous Weekly High | 1.2652 |
| Previous Weekly Low | 1.2436 |
| Previous Monthly High | 1.2584 |
| Previous Monthly Low | 1.2275 |
| Daily Fibonacci 38.2% | 1.2616 |
| Daily Fibonacci 61.8% | 1.2602 |
| Daily Pivot Point S1 | 1.2586 |
| Daily Pivot Point S2 | 1.2551 |
| Daily Pivot Point S3 | 1.2525 |
| Daily Pivot Point R1 | 1.2648 |
| Daily Pivot Point R2 | 1.2675 |
| Daily Pivot Point R3 | 1.2709 |
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