#GBPUSD @ 1.23597 The Cable trades with gains for a second consecutive day. (Pivot Orderbook analysis)

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• The Cable trades with gains for a second consecutive day.
• The US debt-ceiling agreement favored a positive market environment
• Focus shifts to NFP data from May from the US.

The pair currently trades last at 1.23597.

The previous day high was 1.2395 while the previous day low was 1.2311. The daily 38.2% Fib levels comes at 1.2363, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2343, expected to provide support.

Cable trades with gains near the 1.2350 area and benefits from the positive market mood fueled by the announcement on Sunday regarding an agreement on the debt ceiling between US President Joe Biden and Republican House Speaker Kevin McCarthy. While neither country will release relevant economic reports the pace of the session will be dictated by the market assessment of the mentioned agreement.

On Sunday, Joe Biden and Kevin McCarthy made a joint announcement, stating that they have reached an agreement regarding the extension of the debt ceiling. According to the proposed deal, the government would be allowed to borrow money without increasing the limit, which would be temporarily suspended until 2025. However, the proposal still requires approval from Congress, although US officials are hopeful that it will be passed.

The news of the agreement was well-received by Wall Street futures, leading to a rise in their value and exerting downward pressure on the US Dollar.

For the rest of the week, the focus will shift to Nonfarm Payrolls (NFP) data from the US from May which is expected to hint at more pain in the American labor market. In that sense the outlook may have an impact on expectations from the next Federal Reserve (Fed) meeting in June and hence on the US Dollar price dynamics.

Technically speaking, the GBP/USD holds a neutral to bearish outlook for the short term. The bears are struggling to maintain their dominance, but technical indicators are still unfavorable, suggesting that the market may still have some downside potential.

The psychological mark at 1.2320 is the immediate support level for GBP/USD. A break below this level could pave the way towards the 100-day Simple Moving Average (SMA) at 1.2290 area and then to the 1.2250 zone. Furthermore, a move above the 1.2390 level would favor the bull’s momentum with next resistances at the 1.2450 zone and 20-day SMA at 1.2480.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2361 at the time of writing. Pair opened at 1.2348 and is trading with a change of 0.11 % .

The pair is trading below its 20 Daily moving average @ 1.249, below its 50 Daily moving average @ 1.2435 , above its 100 Daily moving average @ 1.2288 and above its 200 Daily moving average @ 1.1978

The previous day high was 1.2395 while the previous day low was 1.2311. The daily 38.2% Fib levels comes at 1.2363, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2343, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2307, 1.2267, 1.2223
• Pivot resistance is noted at 1.2391, 1.2435, 1.2476

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