#GBPUSD @ 1.25570 has resumed its north-side journey as the USD Index has sensed barricades after a less-confident recovery. (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 has resumed its north-side journey as the USD Index has sensed barricades after a less-confident recovery.
- Easing US labor market conditions have faltered expectations of more interest rate hikes from the Fed.
- Higher earnings and upbeat UK Employment would put more pressure on the BoE ahead.
The pair currently trades last at 1.25570.
The previous day high was 1.2561 while the previous day low was 1.2433. The daily 38.2% Fib levels comes at 1.2512, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2482, expected to provide support.
The GBP/USD pair has resumed its upside journey towards the round-level resistance of 1.2600 after a small intervention around 1.2560 in the early London session. Sheer strength in the Cable has been built due to a significant decline in the US Dollar Index (DXY).
S&P500 futures have increased losses in Europe amid a mild caution in the market sentiment as investors are awaiting the release of the United States Consumer Price Index (CPI) (May), which will release on Tuesday.
The USD Index is facing stiff barricades around 103.41 after a less-confident pullback move made after printing a low of 103.30. Investors are dumping positions in the US Dollar after US weekly jobless claims jumped significantly by 28K to 261K for the week ending June 02 vs. upwardly revised expectations of 235K. A 19-month high US Initial Jobless Claims release shows that labor market conditions are not tight enough and the Federal Reserve (Fed) could consider a pause in the policy-tightening spell actively.
For further guidance, US inflation data will be keenly watched. Headline inflation is seen softening to 4.2% vs. the prior release of 4.9%. Core CPI that strips of oil and food prices is expected to accelerate marginal to 5.6% vs. the former release of 5.5%. If core inflation continues to remain persistent, Fed chair Jerome Powell could be more favorable for the continuation of the policy-tightening spell.
Meanwhile, the Pound Sterling would also remain on tenterhooks amid the release of Tuesday’s Employment data (May). As per the preliminary report, Claimant Count Change is expected to drop by 9.6K against a significant increase of 46.7K. The Unemployment Rate is expected to increase to 4.0% vs. the prior release of 3.9%.
Apart from that, three-month Average Earnings excluding bonuses (April) will be keenly watched. The economic data is expected to accelerate to 7.0% vs. the former release of 6.7%. Households equipping higher liquidity for disposal would propel the overall demand and eventually inflationary pressures, which would put more pressure on the Bank of England (BoE) ahead.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2556 at the time of writing. Pair opened at 1.256 and is trading with a change of -0.03 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2556 |
| 1 | Today Daily Change | -0.0004 |
| 2 | Today Daily Change % | -0.0300 |
| 3 | Today daily open | 1.2560 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2437, 50 SMA 1.2464, 100 SMA @ 1.2307 and 200 SMA @ 1.2011.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2437 |
| 1 | Daily SMA50 | 1.2464 |
| 2 | Daily SMA100 | 1.2307 |
| 3 | Daily SMA200 | 1.2011 |
The previous day high was 1.2561 while the previous day low was 1.2433. The daily 38.2% Fib levels comes at 1.2512, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2482, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.2475, 1.239, 1.2347
- Pivot resistance is noted at 1.2603, 1.2646, 1.2731
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2561 |
| Previous Daily Low | 1.2433 |
| Previous Weekly High | 1.2545 |
| Previous Weekly Low | 1.2327 |
| Previous Monthly High | 1.2680 |
| Previous Monthly Low | 1.2308 |
| Daily Fibonacci 38.2% | 1.2512 |
| Daily Fibonacci 61.8% | 1.2482 |
| Daily Pivot Point S1 | 1.2475 |
| Daily Pivot Point S2 | 1.2390 |
| Daily Pivot Point S3 | 1.2347 |
| Daily Pivot Point R1 | 1.2603 |
| Daily Pivot Point R2 | 1.2646 |
| Daily Pivot Point R3 | 1.2731 |
[/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
