#GBPUSD @ 1.17016 UK growth positive in July, but below expectations. (Pivot Orderbook analysis)

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• UK growth positive in July, but below expectations.
• Attention turns to US inflation numbers.
• GBP/USD up for the second day in a row, tests the 20-day SMA.

The pair currently trades last at 1.17016.

The previous day high was 1.1648 while the previous day low was 1.15. The daily 38.2% Fib levels comes at 1.1591, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1556, expected to provide support.

The GBP/USD is rising on Monday and during the American session climbed to 1.1709, reaching the highest level since August 30. Cable remains near the top, holding onto daily gains and a bullish bias in the very near term.

The pound continues to recover from multi-year lows against the US dollar. It is testing the 20-day Simple Moving Average and a consolidation above could open the doors to a more sustainable recovery.

The US dollar is falling across the board on Monday hit by an improvement in risk sentiment and steady US yields. The DXY is falling by 0.75%, hovering around 0108.15. The US 10-year yield stands at 3.28% and the 2*-year at 3.52%. The Dow Jones rises by 0.90% and the S&P 1%, adding to last week’s gains.

On Tuesday, August US CPI numbers are due. A 0.1% decline is expected on the monthly reading and a slide in the annual rate from 8.5% to 8.1%. The report will be relevant for Federal Reserve rate hike expectations ahead of the FOMC meeting next week. The Bank of England will also have its meeting next week (postponed due the Queen’s death).

In the UK, July growth data showed a recovery from the 0.6% June contraction with a 0.2% expansion. The figure was below expectations. On Tuesday labor data is due and the CPI on Wednesday.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.17 at the time of writing. Pair opened at 1.1591 and is trading with a change of 0.94 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.1732, 50 SMA 1.192, 100 SMA @ 1.216 and 200 SMA @ 1.2747.

The previous day high was 1.1648 while the previous day low was 1.15. The daily 38.2% Fib levels comes at 1.1591, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1556, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1511, 1.1431, 1.1362
• Pivot resistance is noted at 1.166, 1.1728, 1.1809

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