#GBPUSD @ 1.20983 meets with a fresh supply on Friday and snaps a three-day winning streak. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• GBP/USD meets with a fresh supply on Friday and snaps a three-day winning streak.
• A combination of factors pushes the USD to a one-month high and exerts pressure.
• Bulls seem rather unimpressed and largely shrug off the mixed UK economic data.

The pair currently trades last at 1.20983.

The previous day high was 1.2194 while the previous day low was 1.2057. The daily 38.2% Fib levels comes at 1.2142, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2109, expected to provide resistance.

The GBP/USD pair extends the previous day’s retracement slide from the vicinity of the 1.2200 mark, or the weekly high and remains under some selling pressure on Friday. Spot prices languish around the 1.2100 mark through the early European session and react little to the latest UK macro data.

The UK Office for National Statistics reported that the economy contracted by 0.5% in December, down from 0.1% growth reported in the previous month and missing estimates for a 0.3% fall. The Preliminary Q4 GDP print, meanwhile, matched expectations and showed that the economy stagnated during the October-December period as compared to a 0.3% decline in the third quarter. The slight disappointment, however, was offset by better-than-expected UK Manufacturing and Industrial Production figures.

Nevertheless, the mixed economic data fails to push back against market speculations that the Bank of England’s rate-hiking cycle is nearing the end and undermines the British Pound. This, along with the prevalent US Dollar buying interest, contributes to the offered tone surrounding the GBP/USD pair. Against the backdrop of hawkish signals from Fed officials, a fresh wave of the global risk-aversion trade turn out to be a key factor that continues to underpin the safe-haven greenback.

The GBP/USD pair, for now, seems to have snapped a three-day winning streak, though the lack of follow-through selling warrants some caution for aggressive bearish traders. Traders now look forward to the US economic docket, featuring the release of the Preliminary Michigan Consumer Sentiment Index. This, along with a scheduled Fed Governor Christopher Waller’s speech, the US bond yields and the broader risk sentiment, will drive the USD and provide some impetus to the GBP/USD pair.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2105 at the time of writing. Pair opened at 1.2116 and is trading with a change of -0.09 % .

The pair is trading below its 20 Daily moving average @ 1.2266, below its 50 Daily moving average @ 1.2191 , above its 100 Daily moving average @ 1.1833 and above its 200 Daily moving average @ 1.1947

The previous day high was 1.2194 while the previous day low was 1.2057. The daily 38.2% Fib levels comes at 1.2142, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2109, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2051, 1.1986, 1.1914
• Pivot resistance is noted at 1.2188, 1.2259, 1.2325

[/s2If]
Join Our Telegram Group