#GBPUSD @ 1.22113 has attempted to build a cushion around 1.2200 after a perpendicular sell-off. (Pivot Orderbook analysis)

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• GBP/USD has attempted to build a cushion around 1.2200 after a perpendicular sell-off.
• Investors are dumping the risk-perceived assets as anxiety among investors is soaring ahead of the US NFP data.
• The BoE might continue hiking interest rates as UK inflation is extremely stubborn.

The pair currently trades last at 1.22113.

The previous day high was 1.2402 while the previous day low was 1.2229. The daily 38.2% Fib levels comes at 1.2295, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2336, expected to provide resistance.

The GBP/USD pair has sensed a pause in its vertical downside journey to near the round-level support of 1.2200 in the Tokyo session. The downside bias is the Cable is still solid as the US Dollar Index (DXY) is on the verge of recording fresh gains above the immediate resistance of 101.55.

Investors are dumping the risk-perceived assets as anxiety among investors is soaring ahead of the release of the United States Nonfarm Payrolls (NFP) data. Losses in the S&P500 futures are deepening in the Asian session as investors are getting worried that a fresh interest rate hike by the Federal Reserve (Fed) is escalating recession fears.

The US Dollar Index (DXY) is displaying back-and-forth action after reaching near 101.55 and is expected to extend upside amid the risk aversion theme. The 10-year US Treasury yields are facing sheer pressure and have dropped below 3.38%.

An interest rate hike of 50 basis points (bps) by the Bank of England (BoE) to 4% triggered a sell-off in the Pound Sterling on Thursday. On interest rate guidance, BoE Governor Andrew Bailey confirmed further interest rate hikes as the inflationary pressures are still in the double-digit figure. The central bank announced a tenth consecutive interest rate hike, however, the United Kingdom economy is not responding as expected. BoE Governor further cited that firms are expecting a decline in the employment cost ahead. It is worth noting that labor cost has been a major catalyst of stubborn inflation.

Going forward, investors will see a power-pack action after the release of the US NFP data. Analysts at TD Securities expect a 220K increase in payroll and a modest increase in the Unemployment Rate to 3.6%.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2211 at the time of writing. Pair opened at 1.2238 and is trading with a change of -0.22 % .

The pair is trading below its 20 Daily moving average @ 1.2291, above its 50 Daily moving average @ 1.2191 , above its 100 Daily moving average @ 1.1797 and above its 200 Daily moving average @ 1.1958

The previous day high was 1.2402 while the previous day low was 1.2229. The daily 38.2% Fib levels comes at 1.2295, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2336, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2178, 1.2117, 1.2005
• Pivot resistance is noted at 1.2351, 1.2463, 1.2524

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