#GBPUSD @ 1.25820 comes under some bearish pressure on Thursday and retreats further from the YTD peak. (Pivot Orderbook analysis)
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- GBP/USD comes under some bearish pressure on Thursday and retreats further from the YTD peak.
- Resurgent USD demand prompts aggressive selling amid some repositioning trade ahead of the BoE.
- The fundamental backdrop still supports prospects for the emergence of dip-buying at lower levels.
The pair currently trades last at 1.25820.
The previous day high was 1.268 while the previous day low was 1.2603. The daily 38.2% Fib levels comes at 1.265, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2632, expected to provide resistance.
The GBP/USD pair extends the previous day’s retracement slide from the 1.2680 region, or its highest level since April 2022 and remains under heavy selling pressure on Thursday. The downward trajectory remains uninterrupted through the early part of the European session and drags spot prices to a fresh weekly low, around the 1.2565 area in the last hour.
The US Dollar (USD) makes a solid comeback following the overnight modest downtick and jumps to over a one-week high, which, in turn, is seen exerting downward pressure on the GBP/USD pair. Despite signs of easing inflationary pressures in the US, traders remain uncertain over the Federal Reserve’s (Fed) next policy move. In fact, the current market pricing indicates a greater chance that the US central bank will leave interest rates steady in June. That said, diverging views over the possibility of rate cuts later this year, along with worries about slowing economic growth, prompt some short-covering around the Greenback.
This, along with some repositioning trade ahead of the highly-anticipated Bank of England (BoE) monetary policy decision, also seems to contribute to the offered tone surrounding the GBP/USD pair. The downside, however, is more likely to remain limited amid expectations that the UK central bank will hike interest rates by another 25 bps later this Thursday. Moreover, economic forecasts published by the National Institute of Economic and Social Research (NIESR) indicated that the underlying inflation in the UK has shown little sign of having peaked. This, in turn, might further hold back traders from placing bearish bets around the British Pound.
Hence, the market focus will be on the post-meeting press conference, where comments by Governor Andrew Bailey will influence the GBP. Later during the early North American session, traders will take cues from the US economic docket, featuring the release of the Producer Price Index (PPI) and the usual Weekly Initial Jobless Claims data. Apart from this, a scheduled speech by Fed Governor Christopher Waller, along with the US bond yields and the broader risk sentiment, will drive the USD and provide some impetus to the GBP/USD pair. Nevertheless, the aforementioned fundamental backdrop warrants some caution for bearish traders.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.258 at the time of writing. Pair opened at 1.2626 and is trading with a change of -0.36 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2580 |
| 1 | Today Daily Change | -0.0046 |
| 2 | Today Daily Change % | -0.3600 |
| 3 | Today daily open | 1.2626 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2504, 50 SMA 1.2337, 100 SMA @ 1.224 and 200 SMA @ 1.1957.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2504 |
| 1 | Daily SMA50 | 1.2337 |
| 2 | Daily SMA100 | 1.2240 |
| 3 | Daily SMA200 | 1.1957 |
The previous day high was 1.268 while the previous day low was 1.2603. The daily 38.2% Fib levels comes at 1.265, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2632, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.2592, 1.2559, 1.2515
- Pivot resistance is noted at 1.2669, 1.2713, 1.2747
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2680 |
| Previous Daily Low | 1.2603 |
| Previous Weekly High | 1.2652 |
| Previous Weekly Low | 1.2436 |
| Previous Monthly High | 1.2584 |
| Previous Monthly Low | 1.2275 |
| Daily Fibonacci 38.2% | 1.2650 |
| Daily Fibonacci 61.8% | 1.2632 |
| Daily Pivot Point S1 | 1.2592 |
| Daily Pivot Point S2 | 1.2559 |
| Daily Pivot Point S3 | 1.2515 |
| Daily Pivot Point R1 | 1.2669 |
| Daily Pivot Point R2 | 1.2713 |
| Daily Pivot Point R3 | 1.2747 |
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