#GBPUSD @ 1.23599 reverses an intraday dip amid a modest USD pullback from over a two-month high. (Pivot Orderbook analysis)
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- GBP/USD reverses an intraday dip amid a modest USD pullback from over a two-month high.
- The disappointing release of the Chicago PMI prompts some profit-taking around the USD.
- Bets for more Fed rate hikes and the risk-off impulse should act as a tailwind for the buck.
The pair currently trades last at 1.23599.
The previous day high was 1.2447 while the previous day low was 1.2327. The daily 38.2% Fib levels comes at 1.2401, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2373, expected to provide resistance.
The GBP/USD pair attracts some dip-buying near the 1.2350-1.2345 area on Wednesday and climbs to the top end of its daily trading range during the early North American session. The pair is currently placed around the 1.2400 mark, below the 50-day Simple Moving Average (SMA) hurdle tested the previous day.
The US Dollar (USD) trims a part of its intraday gains to the highest level since mid-March in reaction to the disappointing release of the Chicago PMI, which fell to 40.4 in May from the 48.6 previous. The British Pound, on the other hand, continues to draw some support from the possibility of additional interest rate hikes by the Bank of England (BoE), bolstered by stronger-than-expected consumer inflation figures released last week. This, in turn, lends some support to the GBP/USD pair, though the lack of follow-through buying warrants caution before positioning for an extension of the recent bounce from the 1.2300 neighbourhood, or a nearly two-month low set last Thursday.
Investors now seem convinced that the Federal Reserve (Fed) will keep interest rates higher for longer and have been pricing in another 25 bps lift-off at the next FOMC policy meeting in June. The bets were reaffirmed by the US Core PCE Price Index released on Friday, which indicated that inflation remains sticky. Apart from this, the risk-off impulse supports prospects for a further near-term appreciating move for the safe-haven buck and might contribute to capping any meaningful upside for the GBP/USD pair. The global risk sentiment takes a hit in the wake of weaker Chinese PMI prints, which adds to worries about a global economic downturn and benefits safe-haven assets.
The aforementioned fundamental backdrop warrants some caution for aggressive bullish traders ahead of important US macro releases scheduled at the beginning of a new month, including the closely-watched Nonfarm-Payrolls (NFP) on Friday. In the meantime, a generally weaker tone around the equity markets might continue to act as a tailwind for the Greenback and keep a lid on any meaningful upside for the GBP/USD pair, at least for the time being.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2397 at the time of writing. Pair opened at 1.2414 and is trading with a change of -0.14 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2397 |
| 1 | Today Daily Change | -0.0017 |
| 2 | Today Daily Change % | -0.1400 |
| 3 | Today daily open | 1.2414 |
The pair is trading below its 20 Daily moving average @ 1.248, below its 50 Daily moving average @ 1.2441 , above its 100 Daily moving average @ 1.2292 and above its 200 Daily moving average @ 1.1984
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2480 |
| 1 | Daily SMA50 | 1.2441 |
| 2 | Daily SMA100 | 1.2292 |
| 3 | Daily SMA200 | 1.1984 |
The previous day high was 1.2447 while the previous day low was 1.2327. The daily 38.2% Fib levels comes at 1.2401, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2373, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.2345, 1.2276, 1.2226
- Pivot resistance is noted at 1.2465, 1.2516, 1.2585
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2447 |
| Previous Daily Low | 1.2327 |
| Previous Weekly High | 1.2472 |
| Previous Weekly Low | 1.2308 |
| Previous Monthly High | 1.2584 |
| Previous Monthly Low | 1.2275 |
| Daily Fibonacci 38.2% | 1.2401 |
| Daily Fibonacci 61.8% | 1.2373 |
| Daily Pivot Point S1 | 1.2345 |
| Daily Pivot Point S2 | 1.2276 |
| Daily Pivot Point S3 | 1.2226 |
| Daily Pivot Point R1 | 1.2465 |
| Daily Pivot Point R2 | 1.2516 |
| Daily Pivot Point R3 | 1.2585 |
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