#GBPUSD @ 1.14830 bulls are attempting to hold the key support areas on the charts (Pivot Orderbook analysis)

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• GBP/USD bulls are attempting to hold the key support areas on the charts
• However, the greenback remains in the hands of the bears ahead of key central bank meetings.

The pair currently trades last at 1.14830.

The previous day high was 1.159 while the previous day low was 1.148. The daily 38.2% Fib levels comes at 1.1548, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1522, expected to provide resistance.

GBP/USD bulls are attempting a correction from an important support area near the midpoint of the 1.1400 area, with the price recovering from a low of 1.1462 and now testing the bear’s commitments at 1.1500. The pound, however, is still losing some .03% on the day as the US dollar edges up following data showing US Retail Sales unexpectedly rebounded in August.

Retail Sales increased 0.3% last month and the US dollar has held near recent peaks, supported by the view that the Federal Reserve will keep tightening policy aggressively. The data of late, including this week’s surprise increase in consumer prices in August, has reinforced the bullish case for the greenback as investors price in a third consecutive 75-basis-point rate hike next Wednesday.

Meanwhile, the Bank of England is also expected to hike by another 50bp on Thursday 22 September, but it remains a close call between 50bp and 75bp due to the rising recession risk. Analysts at Danske Bank argue that the BoE has had a tendency to surprise to the dovish side at recent meetings. ”Additionally, BoE was the first G10 central bank to forecast a recession by Q4 2022 at its last meeting, while using a far more dovish market pricing as policy input than what is currently priced.”

The analysts expect 50bp hikes in September, November and December followed by a final 25bp hike in February 2023. ”The endpoint is thus lifted to 3.25% (from 2.50%). We see the possibility for further hikes in 2023, if we see underlying inflation pressures to prove persistent.”

Politically, the analysts cite the newly elected Prime Minister Liz Truss; plans to add upside to inflation down the road with inflation possibly proving to be more persistent. ”This could highlight the need for further hikes in 2023, yet amid the deficit funding uncertainty we still lean towards 50bp next week.”

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1495 at the time of writing. Pair opened at 1.1541 and is trading with a change of -0.4 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.1658, 50 SMA 1.1895, 100 SMA @ 1.2128 and 200 SMA @ 1.2722.

The previous day high was 1.159 while the previous day low was 1.148. The daily 38.2% Fib levels comes at 1.1548, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1522, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.1484, 1.1427, 1.1374
• Pivot resistance is noted at 1.1594, 1.1646, 1.1703

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