#GBPUSD @ 1.23735 gains some positive traction for the third straight day, though lacks follow-through. (Pivot Orderbook analysis)
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- GBP/USD gains some positive traction for the third straight day, though lacks follow-through.
- Hawkish BoE expectations underpin the GBP and lend support amid subdued USD price action.
- Bets for more Fed rate hikes to limit the USD losses and cap any meaningful gains for the major.
The pair currently trades last at 1.23735.
The previous day high was 1.2372 while the previous day low was 1.2335. The daily 38.2% Fib levels comes at 1.2358, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2349, expected to provide support.
The GBP/USD pair attracts some dip-buying near the 1.2325 region on Tuesday and turns positive for the third straight day, though remains confined well within a familiar trading band held over the past week or so. The pair currently placed near the top end of its daily range, around the 1.2375 region and is supported by a combination of factors.
Investors remain anxious over the possibility of further monetary policy tightening by the UK central bank, bolstered by stronger-than-expected consumer inflation figures released last week. This, in turn, is seen underpinning the British Pound (GBP) and acting as a tailwind for the GBP/USD pair amid subdued US Dollar (USD) price action. In fact, the USD Index (DXY), which tracks the Greenback against a basket of currencies, enters a bullish consolidation phase following an early uptick to its highest level since mid-March.
The latest optimism over raising the US debt ceiling boosts investors’ confidence, which is evident from a generally positive tone around the equity markets and undermines the safe-haven buck. The downside for the USD, meanwhile, seems limited amid growing acceptance that the Federal Reserve (Fed) will keep interest rates higher for longer. In fact, the current market pricing indicates a greater chance of another 25 bps lift-off at the June FOMC meeting. The expectations were lifted by the recent hawkish remarks by several policymakers.
Adding to this, the Core PCE Price Index – the Fed’s preferred inflation gauge – released on Friday indicated stick inflation and reaffirmed hawkish Fed expectations. This makes it prudent to wait for strong follow-through buying before confirming that the recent pullback from over a one-year high touched earlier this month has run its course and placing fresh bullish bets around the GBP/USD pair. Traders now look to the Conference Board’s US Consumer Confidence Index for a fresh impetus later during the early North American session.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2366 at the time of writing. Pair opened at 1.2356 and is trading with a change of 0.08 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2366 |
| 1 | Today Daily Change | 0.0010 |
| 2 | Today Daily Change % | 0.0800 |
| 3 | Today daily open | 1.2356 |
The pair is trading below its 20 Daily moving average @ 1.2483, below its 50 Daily moving average @ 1.2437 , above its 100 Daily moving average @ 1.229 and above its 200 Daily moving average @ 1.1981
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2483 |
| 1 | Daily SMA50 | 1.2437 |
| 2 | Daily SMA100 | 1.2290 |
| 3 | Daily SMA200 | 1.1981 |
The previous day high was 1.2372 while the previous day low was 1.2335. The daily 38.2% Fib levels comes at 1.2358, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2349, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.2337, 1.2318, 1.23
- Pivot resistance is noted at 1.2373, 1.2391, 1.241
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2372 |
| Previous Daily Low | 1.2335 |
| Previous Weekly High | 1.2472 |
| Previous Weekly Low | 1.2308 |
| Previous Monthly High | 1.2584 |
| Previous Monthly Low | 1.2275 |
| Daily Fibonacci 38.2% | 1.2358 |
| Daily Fibonacci 61.8% | 1.2349 |
| Daily Pivot Point S1 | 1.2337 |
| Daily Pivot Point S2 | 1.2318 |
| Daily Pivot Point S3 | 1.2300 |
| Daily Pivot Point R1 | 1.2373 |
| Daily Pivot Point R2 | 1.2391 |
| Daily Pivot Point R3 | 1.2410 |
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