#GBPUSD @ 1.18212 The formation of a symmetrical triangle indicates a consolidation ahead. (Pivot Orderbook analysis)

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• The formation of a symmetrical triangle indicates a consolidation ahead.
• Overlapping short-to-medium-term EMAs signals a volatility contraction.
• Quiet market mood is keeping the risk-perceived assets in a rangebound structure.

The pair currently trades last at 1.18212.

The previous day high was 1.1951 while the previous day low was 1.1858. The daily 38.2% Fib levels comes at 1.1915, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1893, expected to provide resistance.

The GBPUSD pair turned sideways in the early Tokyo session after attempting a rebound below the critical support of 1.1800. The Cable is looking to extend its recovery above 1.1820 as risk-perceived currencies are gaining some traction in a quiet market mood.

Meanwhile, the US dollar index (DXY) is hovering around 107.80 after a bullish Monday. Apart from that, the 10-year US Treasury yields also rebounded to near 3.83% despite bleak chances of continuation of the 75 basis points (bps) rate hike structure by the Federal Reserve (Fed).

A formation of a Symmetrical Triangle on an hourly scale is indicating a volatility contraction. The upward-sloping trendline of the chart pattern is placed from November 14 low at 1.1710 while the downward-sloping trendline is plotted from November 15 high at 1.2029. A breakout of the same will result in wider ticks and heavy volume.

The 20-and 50-period Exponential Moving Averages (EMAs) are overlapping with each other, which signals a consolidation ahead.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into 40.00-60.00, which indicates the unavailability of a fresh trigger for decisive action ahead.

Going forward, a break above Friday’s high at 1.1950 will drive Cable towards November 15 high at 1.2029, followed by the round-level resistance at 1.2100.

On the flip side, a drop below Monday’s low at 1.1780 will drag the asset toward November 14 low at 1.1710. A slippage below November 14 low will expose the asset to the horizontal support plotted from October 27 high at 1.1646.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1822 at the time of writing. Pair opened at 1.1884 and is trading with a change of -0.52 % .

The pair is trading above its 20 Daily moving average @ 1.1584, above its 50 Daily moving average @ 1.137 , above its 100 Daily moving average @ 1.1645 and below its 200 Daily moving average @ 1.2224

The previous day high was 1.1951 while the previous day low was 1.1858. The daily 38.2% Fib levels comes at 1.1915, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1893, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.1844, 1.1805, 1.1751
• Pivot resistance is noted at 1.1937, 1.199, 1.203

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