#GBPUSD @ 1.23364 has rebounded firmly from 1.2320 amid hopes of a pause in the policy-tightening spell by the Fed. (Pivot Orderbook analysis)
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- GBP/USD has rebounded firmly from 1.2320 amid hopes of a pause in the policy-tightening spell by the Fed.
- The deviation in proposed budget spending by the White House to Republican leaders has narrowed to $70 billion from original proposal of $1 trillion.
- A rebound in retail demand could fuel inflationary pressures and create more troubles for the BoE.
The pair currently trades last at 1.23364.
The previous day high was 1.2387 while the previous day low was 1.2308. The daily 38.2% Fib levels comes at 1.2338, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2357, expected to provide resistance.
The GBP/USD pair has shown a recovery move after building a base around 1.2320 in the Tokyo session. The Cable is expected to extend recovery further as the US Dollar Index (DXY) has dropped further below 104.10 amid hopes of a pause in the policy-tightening spell by the Federal Reserve (Fed).
S&P500 futures have posted decent losses in early Asia as investors are getting cautious due to unresolved US borrowing cap issues. The deviation in proposed budget spending by the White House to Republican leaders has narrowed to $70 billion from the original proposal of $1 trillion. Meanwhile, House of Representatives Kevin McCarthy cited that his team is working on reaching a bipartisan.
However, US Treasury Secretary Janet Yellen is consistently warning that the Federal government will be out of funds by June 01 and could make default in some obligated payments.
The USD Index is looking to extend its downside journey towards 104.00 as a pause in a rate-hiking spell by the Fed would trim interest rate divergence with other central banks. Richmond Fed Bank President Thomas Barkin said on Thursday that the US labor market remains tight and added noted that some businesses are still saying that they need to raise prices, per Reuters. However, he added that higher interest rates and tight credit conditions by US regional banks have impacted heavily on demand.
On the Pound Sterling front, investors are awaiting the release of the United Kingdom Retail Sales data (April). As per the preliminary report, monthly Retail Sales are seen expanding by 0.3% against a contraction of 0.9% reported last month. While annual Retail Sales are expected to contract by 2.8% vs. a contraction of 3.1%. A rebound in retail demand could fuel inflationary pressures and create more troubles for the Bank of England (BoE).
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2333 at the time of writing. Pair opened at 1.2321 and is trading with a change of 0.1 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2333 |
| 1 | Today Daily Change | 0.0012 |
| 2 | Today Daily Change % | 0.1000 |
| 3 | Today daily open | 1.2321 |
The pair is trading below its 20 Daily moving average @ 1.2501, below its 50 Daily moving average @ 1.2432 , above its 100 Daily moving average @ 1.2285 and above its 200 Daily moving average @ 1.1976
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2501 |
| 1 | Daily SMA50 | 1.2432 |
| 2 | Daily SMA100 | 1.2285 |
| 3 | Daily SMA200 | 1.1976 |
The previous day high was 1.2387 while the previous day low was 1.2308. The daily 38.2% Fib levels comes at 1.2338, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2357, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.229, 1.226, 1.2211
- Pivot resistance is noted at 1.237, 1.2418, 1.2449
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2387 |
| Previous Daily Low | 1.2308 |
| Previous Weekly High | 1.2547 |
| Previous Weekly Low | 1.2392 |
| Previous Monthly High | 1.2584 |
| Previous Monthly Low | 1.2275 |
| Daily Fibonacci 38.2% | 1.2338 |
| Daily Fibonacci 61.8% | 1.2357 |
| Daily Pivot Point S1 | 1.2290 |
| Daily Pivot Point S2 | 1.2260 |
| Daily Pivot Point S3 | 1.2211 |
| Daily Pivot Point R1 | 1.2370 |
| Daily Pivot Point R2 | 1.2418 |
| Daily Pivot Point R3 | 1.2449 |
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