#GBPUSD @ 1.11417 During the week, the British pound has recovered 3.84% from the last week’s loss. (Pivot Orderbook analysis)

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• During the week, the British pound has recovered 3.84% from the last week’s loss.
• The GBP/USD failure to clear 1.1200 sent the pair sliding toward current exchange rate levels.
• If it clears the 1.1050, it could pave the way towards the 38.2% Fibonacci retracement at around 1.0880s.

The pair currently trades last at 1.11417.

The previous day high was 1.0916 while the previous day low was 1.054. The daily 38.2% Fib levels comes at 1.0772, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0683, expected to provide support.

The GBP/USD rallies sharply, trimming some of the last week’s losses, closing to the 1.1200 figure after being at the brink of testing parity when the pound fell to its lowest at 1.0356. At the time of writing, the GBP/USD is trading at 1.1133, 0.25% above its opening price, as the Asian session begins.

From a daily chart perspective, the GBP/USD is downward biased, despite the astonishing recovery in the week. Due to last Friday’s 600 pip volatile session, a mean reversion move was expected. The Relative Strength Index (RSI), exited from oversold conditions at 41.59 but shifted almost horizontally, meaning buyers’ momentum is dissipating.

Given the previously mentioned scenario and the GBP/USD failure to clear the 61.8% Fibonacci retracement at 1.1210, a fall towards 1.1050, the 50% Fibonacci level, drawn from the high/low of 1.1738/1.0356, is on the cards.

Therefore, the GBP/USD first support would be the 1.1100 mark. Once cleared, the next support would be the 50% Fibonacci retracement at 1.1050, which, once hurdle, could pave the way for a re-test of the 38.2% Fibonacci retracement at 1.0884.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1133 at the time of writing. Pair opened at 1.089 and is trading with a change of 2.36 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.1341, 50 SMA 1.1736, 100 SMA @ 1.2 and 200 SMA @ 1.2616.

The previous day high was 1.0916 while the previous day low was 1.054. The daily 38.2% Fib levels comes at 1.0772, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0683, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0648, 1.0405, 1.0271
• Pivot resistance is noted at 1.1024, 1.1158, 1.1401

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