#GBPUSD @ 1.14577 is consolidating its retreat around 1.1450 as the US dollar finds demand in Asia. (Pivot Orderbook analysis)

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• GBP/USD is consolidating its retreat around 1.1450 as the US dollar finds demand in Asia.
• Investors turn cautious amid discouraging US tech giants’ earnings, flaggings recession fears.
• Cable buyers will hold the fort so long as the price stays above the bearish 50DMA.

The pair currently trades last at 1.14577.

The previous day high was 1.15 while the previous day low was 1.1271. The daily 38.2% Fib levels comes at 1.1412, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1358, expected to provide support.

GBP/USD is consolidating the latest pullback from six-week highs of 1.1499, as the US dollar finds fresh demand amid a cautious market mood.

The safe-haven dollar is staging a modest comeback after disappointing US corporate earnings from the tech titans Microsoft and Alphabet marred a three-day rally on Wall Street and knocked off S&P 500 futures by 1%. The below forecast results from tech giants hinted at possible early signs of a slowdown in the US economy.

However, the pair remains supported by the advances in the Asian indices, as investors remained hopeful that the pace of US and global rate hikes will start to slow. Further, the pound also cheers the UK Prime Minister Rishi Sunak taking office, with eyes on his fiscal plan. Reports were doing the rounds on Tuesday that Sunak could delay its budget announcement beyond October 31.

The focus now shifts towards the US economic releases due later in the day, especially after the country’s CB Consumer Confidence Index rose to 108.00 in September from 103.6 in August (revised from 103.2). The US New Home Sales, Goods Trade Balance and Wholesale Inventories data will be closely eyed for fresh implications on the Fed rate hike outlook. The UK political and fiscal updates will also have a significant impact on the sentiment around the pound.

The spot could extend the retreat should the US dollar recovery gather strength on the renewed weakness in the Wall Street stocks, as investors digest the downbeat earnings and brace for another batch of corporate results.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1453 at the time of writing. Pair opened at 1.1471 and is trading with a change of -0.16 % .

The pair is trading above its 20 Daily moving average @ 1.1217, above its 50 Daily moving average @ 1.1401 , below its 100 Daily moving average @ 1.176 and below its 200 Daily moving average @ 1.2396

The previous day high was 1.15 while the previous day low was 1.1271. The daily 38.2% Fib levels comes at 1.1412, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1358, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1328, 1.1186, 1.11
• Pivot resistance is noted at 1.1556, 1.1642, 1.1785

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