#GBPUSD @ 1.24457 trades with a mild positive bias and is supported by subdued USD price action. (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 trades with a mild positive bias and is supported by subdued USD price action.
- The uncertainty over the Fed’s next policy moves keeps the USD bulls on the defensive.
- Bets for additional BoE rate hikes underpin the Sterling and act as a tailwind for the pair.
The pair currently trades last at 1.24457.
The previous day high was 1.25 while the previous day low was 1.2395. The daily 38.2% Fib levels comes at 1.246, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2435, expected to provide support.
The GBP/USD pair edges higher during the Asian session on Thursday, albeit remains well below the weekly top, around the 1.2500 psychological mark touched the previous day. The pair is currently placed just below mid-1.2400s, up less than 0.10% for the day, and draws support from subdued US Dollar (USD) price action.
The USD Index (DXY), which tracks the Greenback against a basket of currencies, continues with its struggle to gain any meaningful traction in the wake of the uncertainty over the Federal Reserve’s (Fed) next policy move. Last week’s dovish rhetoric by several Fed officials lifted bets for an imminent pause in the US central bank’s policy tightening cycle. Last week’s dovish rhetoric by several Fed officials lifted bets for an imminent pause in the US central bank’s policy tightening cycle.
This, in turn, remains supportive of elevated US Treasury bond yields and should act as a tailwind for the USD. In fact, the yield on the benchmark 10-year US government bond holds steady near the monthly peak touched on Wednesday, which might hold back traders from placing aggressive bearish bets around the buck and cap any meaningful gains for the GBP/USD pair. The downside, however, seems limited on the back of expectations for further policy tightening by the Bank of England (BoE).
Investors now seem convinced that the UK central bank will be far more aggressive in policy tightening to contain stubbornly high inflation and expect another 25 bps lift-off on June 22. Furthermore, market participants see a roughly 60% chance that rates will peak at 5.5% later this year. The bets were reaffirmed by the official consumer inflation data, which showed that the headline UK CPI fell less than expected in April and a closely watched measure of core price surged to a 31-year high.
Moving ahead, there isn’t any relevant market-moving economic data due for release from the UK on Thursday, leaving the GBP/USD pair at the mercy of the USD price dynamics. Later during the North American session, traders will take cues from the Weekly Initial Jobless Claims data. Apart from this, the US bond yields will drive the USD and provide some impetus to the major. Nevertheless, the mixed fundamental backdrop warrants caution before placing fresh directional bets.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2448 at the time of writing. Pair opened at 1.2437 and is trading with a change of 0.09 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2448 |
| 1 | Today Daily Change | 0.0011 |
| 2 | Today Daily Change % | 0.0900 |
| 3 | Today daily open | 1.2437 |
The pair is trading above its 20 Daily moving average @ 1.2434, below its 50 Daily moving average @ 1.246 , above its 100 Daily moving average @ 1.2305 and above its 200 Daily moving average @ 1.2006
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2434 |
| 1 | Daily SMA50 | 1.2460 |
| 2 | Daily SMA100 | 1.2305 |
| 3 | Daily SMA200 | 1.2006 |
The previous day high was 1.25 while the previous day low was 1.2395. The daily 38.2% Fib levels comes at 1.246, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2435, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.2388, 1.2339, 1.2283
- Pivot resistance is noted at 1.2493, 1.2549, 1.2598
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2500 |
| Previous Daily Low | 1.2395 |
| Previous Weekly High | 1.2545 |
| Previous Weekly Low | 1.2327 |
| Previous Monthly High | 1.2680 |
| Previous Monthly Low | 1.2308 |
| Daily Fibonacci 38.2% | 1.2460 |
| Daily Fibonacci 61.8% | 1.2435 |
| Daily Pivot Point S1 | 1.2388 |
| Daily Pivot Point S2 | 1.2339 |
| Daily Pivot Point S3 | 1.2283 |
| Daily Pivot Point R1 | 1.2493 |
| Daily Pivot Point R2 | 1.2549 |
| Daily Pivot Point R3 | 1.2598 |
[/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
