#GBPUSD @ 1.12063 rallies for the second successive day and hits a one-week high on Thursday. (Pivot Orderbook analysis)

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• GBP/USD rallies for the second successive day and hits a one-week high on Thursday.
• Talks of a mini-budget U-turn by the UK government boost sterling and offers support.
• The stronger US CPI-inspired broad-based rally caps the pair near the 1.1300 mark.

The pair currently trades last at 1.12063.

The previous day high was 1.1134 while the previous day low was 1.0924. The daily 38.2% Fib levels comes at 1.1054, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1004, expected to provide support.

The GBP/USD pair gains strong positive traction for the second straight day on Thursday and builds on the previous day’s goodish rebound from a nearly two-week low. The momentum lifts spot prices to a one-week high, though falter near the 1.1300 mark following the release of hotter US consumer inflation figures.

The British pound gets a strong lift amid talks that the new UK government could reverse its vast tax cuts announced in the mini-budget in September. The intraday positive move, however, runs out of steam amid a strong pickup in the US dollar demand, bolstered by a stronger US CPI report and hawkish Fed expectations.

From a technical perspective, the GBP/USD pair found decent support on Wednesday near the 50% Fibonacci retracement level of the recent strong recovery from an all-time low. A subsequent move beyond the 100-period SMA on the 4-hour chart prompts some technical selling and contributes to the strong intraday move up.

Bulls, however, face rejection near the 200-hour SMA, which is currently pegged near the 1.1300 round figure and should act as a pivotal point. Meanwhile, technical indicators on the daily chart – though have been recovering from the negative territory – are yet to gain any meaningful traction and warrant caution for bulls.

Hence, it will be prudent to wait for a sustained strength beyond the 1.1300 mark before traders start positioning for any further appreciating move. The GBP/USD pair might then accelerate the momentum towards the next relevant hurdle near the 1.1370 region before aiming to reclaim the 1.1400 round-figure mark.

On the flip side, the 1.1120-1.1115 horizontal zone now seems to protect the immediate downside ahead of the 1.1100 level. Any further decline is likely to find decent support near the 1.1085 region (100-period SMA on the 4-hour chart), which is closely followed by the 38.2% Fibo. level, around the 1.1065-1.1060 zone.

A convincing break below the latter will suggests that the two-day-old uptrend has lost steam and shit the bias back in favour of bearish traders.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.119 at the time of writing. Pair opened at 1.1102 and is trading with a change of 0.79 % .

The pair is trading above its 20 Daily moving average @ 1.1158, below its 50 Daily moving average @ 1.1549 , below its 100 Daily moving average @ 1.1875 and below its 200 Daily moving average @ 1.2501

The previous day high was 1.1134 while the previous day low was 1.0924. The daily 38.2% Fib levels comes at 1.1054, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1004, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0972, 1.0843, 1.0762
• Pivot resistance is noted at 1.1183, 1.1263, 1.1393

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