#GBPUSD @ 1.10731 retreats over 100 pips from the weekly high touched earlier this Friday. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE 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_level4)]

• GBP/USD retreats over 100 pips from the weekly high touched earlier this Friday.
• The emergence of fresh USD buying turns out to be a key factor exerting pressure.
• The US PCE data does little to provide any impetus, though favours the USD bulls.

The pair currently trades last at 1.10731.

The previous day high was 1.1122 while the previous day low was 1.0762. The daily 38.2% Fib levels comes at 1.0984, expected to provide support. Similarly, the daily 61.8% fib level is at 1.09, expected to provide support.

The GBP/USD pair retreats sharply from the 1.1235 region, or the weekly high touched this Friday and refreshes the daily low during the early North American session. Spot prices, however, recover a few pips and hold steady just above the 1.1050 area post-US macro data.

The US dollar makes a solid comeback on the last day of the week and stalls its recent sharp corrective decline from a two-decade high. This turns out to be a key factor behind the GBP/USD pair’s intraday turnaround. The USD sticks to its intraday gains following the release of stronger-than-expected US Personal Consumption Expenditures (PCE) data.

The US Bureau of Economic Analysis reported that PCE Price Index eased to 6.2% YoY in August from 6.4% in the previous month, missing expectations for a rise to 6.6%. The disappointment from the headline print, however, was offset by the Core PCE Price Index (the Fed’s preferred inflation gauge, which rose by 0.6% and to a 4.7% YoY rate during the reported month.

The data all but reaffirmed market bets that the Federal Reserve will stick to a more aggressive rate hiking cycle to curb persistently high inflation. This triggers an intraday recovery in the US Treasury bond yields, which, along with the prevalent risk-off environment, underpins the safe-haven greenback and continues to weigh on the GBP/USD pair.

That said, the lack of any follow-through selling warrants some caution before confirming that the strong recovery from an all-time low touched on Monday has run out of steam. Nevertheless, the GBP/USD pair, for now, seems to have snapped a three-day winning streak, though remains on track to register strong weekly gains.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1075 at the time of writing. Pair opened at 1.1119 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 @ 1.132, 50 SMA 1.1719, 100 SMA @ 1.1989 and 200 SMA @ 1.2605.

The previous day high was 1.1122 while the previous day low was 1.0762. The daily 38.2% Fib levels comes at 1.0984, expected to provide support. Similarly, the daily 61.8% fib level is at 1.09, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.088, 1.0642, 1.0521
• Pivot resistance is noted at 1.1239, 1.136, 1.1598

[/s2If]
Join Our Telegram Group