#GBPUSD @ 1.20660 jumps back toward 1.2100 amid risk recovery. (Pivot Orderbook analysis)

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• GBP/USD jumps back toward 1.2100 amid risk recovery.
• US Dollar rebound fizzles out, USD/JPY sell-off weighs.
• GBP/USD bounces off 200DM, RSI enters into the bullish zone.

The pair currently trades last at 1.20660.

The previous day high was 1.2102 while the previous day low was 1.2034. The daily 38.2% Fib levels comes at 1.206, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2076, expected to provide resistance.

GBP/USD is holding onto the latest upswing toward 1.2100, as bulls jump back into the game amid holiday-thinned market conditions.

The main catalyst behind the pair’s renewed upside is the fresh round of selling seen in the US Dollar across the board. As the broad market sentiment is improving, the safe-haven US Dollar is fading its recovery attempts amid a subdued performance in the US Treasury bond yields. Upbeat Chinese Caixin Manufacturing is helping lift the overall market mood, with the US S&P 500 futures wiping out entire losses.

The fresh move lower in the US Dollar is also driven by the USD/JPY sell-off, as the Japanese yen rallies hard on speculations that the Bank of Japan (BoJ) is on course to exit from its ultra-loose easy monetary, as the year 2023 kicks in. In absence of any high-impact data from both sides of the Atlantic, risk trends and the US Dollar price action will continue, although the US S&P Global Manufacturing PMI could offer some trading incentives to Cable.

From a short-term technical perspective, the GBP/USD pair is extending its range play below the 21 and 200-Daily Moving Averages (DMA) for the third straight trading day.

GBP bulls continue defending the 200DMA at 1.2036, looking to take out the daily highs at 1.2085 in a bid to recapture the 1.2100 round figure.

The 14-day Relative Strength Index (RSI) is heading higher above the midline, justifying the renewed uptick.

On the downside, Cable needs a sustained move above the 200DMA before challenging the 1.2000 barrier.

A breach of the latter could trigger a fresh sell-off toward the bullish 50DMA at 1.1933.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2075 at the time of writing. Pair opened at 1.2049 and is trading with a change of 0.2 % .

The pair is trading below its 20 Daily moving average @ 1.2151, above its 50 Daily moving average @ 1.1922 , above its 100 Daily moving average @ 1.1667 and above its 200 Daily moving average @ 1.2041

The previous day high was 1.2102 while the previous day low was 1.2034. The daily 38.2% Fib levels comes at 1.206, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2076, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2021, 1.1994, 1.1954
• Pivot resistance is noted at 1.2089, 1.2129, 1.2156

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