GBPUSD is looking to reclaim the 1.1600 hurdle amid an upbeat market mood. (Pivot Orderbook analysis)

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• GBPUSD is looking to reclaim the 1.1600 hurdle amid an upbeat market mood.
• US stocks will perform strongly if Fed confirms a slowdown in the rate hike pace.
• The BOE will do whatever is needed to drag the inflation rate to 2%.

The pair currently trades last at 1.1546.

The previous day high was 1.1542 while the previous day low was 1.1291. The daily 38.2% Fib levels comes at 1.1446, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1387, expected to provide support.

The GBPUSD pair has witnessed the entry of smart money after a corrective move from 1.1600 in the early Tokyo session. The Cable is expected to recapture a weekly high around 1.1600 amid an improvement in investors’ risk appetite. Positive market sentiment is continuously punishing the mighty US dollar index (DXY).

The DXY slipped to near 109.35 and registered a fresh seven-week low and three-consecutive bearish trading sessions for the first time in the past two months. S&P500 is having a ball and has been on a winning spree. It seems that expectations for a slowdown in the pace of the rate hike chosen by the Federal Reserve (Fed) are fetching optimism.

The 10-year US Treasury yields have dropped dramatically to 4.13% as guidance from Fed is getting less hawkish. Also, anxiety ahead of October’s Consumer Price Index (CPI) report is keeping US government bonds’ returns at the edge.

Economists at Charles Schwab are of the view that “Central banks seem to be stepping down from aggressive rate hikes, which may lead to a year-end “Santa Pause” rally for stocks”. They further added that “There can be no guarantee that central banks will continue to step down the pace of their hikes or pause them, but if they do it is possible a ‘Santa Pause’ rally could be in store for markets as the year draws to a close.”

On the UK front, Bank of England (BoE) Chief Economist Huw Pill at the UBS European Conference cited that the central bank will be blamed for the UK recession but it is driven by other factors. The BOE will do whatever is needed to drag the inflation rate to 2%. Going forward, UK’s Gross Domestic Product (GDP) data will remain in focus. The GDP data on an annual basis is seen lower at 2.1% vs. the prior release of 4.4%. And, the quarterly regime is expected to display negative growth by 0.5% against an expansion of 0.2%.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.1546 at the time of writing. Pair opened at 1.1511 and is trading with a change of 0.3 % .

The pair is trading above its 20 Daily moving average @ 1.1347, above its 50 Daily moving average @ 1.1335 , below its 100 Daily moving average @ 1.1687 and below its 200 Daily moving average @ 1.2305

The previous day high was 1.1542 while the previous day low was 1.1291. The daily 38.2% Fib levels comes at 1.1446, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1387, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1354, 1.1197, 1.1103
• Pivot resistance is noted at 1.1605, 1.1699, 1.1856

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