#GBPUSD @ 1.24209 swings in a 60-pip range, impacted by US bond yields and lack of domestic data. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• GBP/USD swings in a 60-pip range, impacted by US bond yields and lack of domestic data.
• The World Bank ups 2023 US growth forecast to 1.1% but slashes projections for 2024 amidst the manufacturing slump.
• Central bank policy decisions are in the spotlight as RBA hikes rates; BoC takes center stage, Fed decision awaited.

The pair currently trades last at 1.24209.

The previous day high was 1.246 while the previous day low was 1.2369. The daily 38.2% Fib levels comes at 1.2403, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2425, expected to provide resistance.

GBP/USD hovers around the 1.2420s area after traveling around a 60-pip range on Tuesday, capped by the lack of economic data from the United States (US) and mixed market sentiment. Factors linked to US bond yields and the greenback, weighed on the Pound Sterling (GBP), set to register back-to-back days of losses. At the time of writing, the GBP/USD is trading at 1.2420.

Wall Street is trading mixed. Traders ignored data during the European session, as the construction PMI for the United Kingdom (UK) came in at 51.6 in May, exceeding the prior’s month reading of 51.1. Yet, the GBP/USD failed to gain traction as the US dollar rose.

Earlier in the North American session, the World Bank improved the economic outlook for the US, forecasting the economy will grow 1.1%, double January’s forecast of 0.5% in 2023. Even though it’s a good sign, projections for 2024 were slashed to 0.8%.

Meanwhile, the latest ISM PMIs release revealed that the economy is worsening as the manufacturing PMI contracted for the seven-straight month. Even though the services PMI expanded, the trend leans downward, increasing woes for a recession in the US.

Contrarily to weakening PMIs, was the latest jobs data, which further reinforces the thesis of doing more by the Federal Reserve. May Nonfarm Payrolls have added 339K jobs to the economy, portraying a resilient labor market. But the jump in the Unemployment Rate keeps the Fed at crossroads as it scrambles to curb sticky inflation at around double its target.

Given the backdrop, investors’ expectations for a hold at the June meeting lie at 76%, as shown by the CME FedWatch Tool. However, traders must be aware of the current week’s central banks’ monetary policy decisions amongst the G10, as the Reserve Bank of Australia (RBA) raised rates, while the Bank of Canada (BoC) took center stage on Wednesday. The latest round of inflation in Australia and Canada showed that inflation stabilized but later resumed upwards, pressuring the central banks.

From a technical perspective, the GBP/USD remains supported by long-term daily EMAs below the exchange rate, depicting an uptrend but capped by the 20-day EMA at 1.2439. In addition, the 1.2500 handle is well defended by solid resistance with a bearish-harami formation around that area, which spurred a retracement from the late May rally, towards the June 2 high of 1.2544, before the ongoing pullback. Upside risks lie above 1.2459 and once cleared, the GBP/USD could test 1.2500. On the other hand, the GBP/USD could extend its losses below the 50-day EMA at 1.2409 and challenge the 100-day EMA at 1.2312.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2423 at the time of writing. Pair opened at 1.2442 and is trading with a change of -0.15 % .

The pair is trading below its 20 Daily moving average @ 1.2454, below its 50 Daily moving average @ 1.2456 , above its 100 Daily moving average @ 1.2303 and above its 200 Daily moving average @ 1.1998

The previous day high was 1.246 while the previous day low was 1.2369. The daily 38.2% Fib levels comes at 1.2403, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2425, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2387, 1.2332, 1.2296
• Pivot resistance is noted at 1.2478, 1.2514, 1.2569

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group