#GBPUSD @ 1.23941 US Consumer Confidence continued deteriorating as Americans became more “pessimistic” about the economic outlook. (Pivot Orderbook analysis)
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER 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_level1)]
- US Consumer Confidence continued deteriorating as Americans became more “pessimistic” about the economic outlook.
- Federal Reserve Regional Manufacturing and Services Indices show mixed readings, though flashing a deceleration in the US economy.
- BoE Chief Economist says Brits need to accept they’re “poorer”; calls for higher rates to tackle inflation.
The pair currently trades last at 1.23941.
The previous day high was 1.2486 while the previous day low was 1.2411. The daily 38.2% Fib levels comes at 1.2457, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.244, expected to provide resistance.
GBP/USD reverses its earlier course after hitting a weekly high of 1.2507 and drops towards the 1.2400 figure amidst a risk-off impulse that triggered flows towards safe-haven assets. Therefore, the US Dollar (USD) remains in the driver’s seat, although US Treasury bond yields are collapsing. The GBP/USD is trading at 1.2401, down 0.67%.
Sentiment remains deteriorating as the latest tranche of economic data from the United States (US) increased investors’ worries. Consumer Confidence in the United States dipped to its lowest level since July at 101.3, vs. estimates of 104.0. “Consumers became more pessimistic about the outlook for both business conditions and labor markets,” said Ataman Ozyildirim, senior director of economics at the Conference Board.
Further data, like the Philadelphia Fed Non-Manufacturing Activity plunging to -22.8, sparked recessionary fears. Of late, the Dallas Fed revealed the Services Activity Index for April, showing a slight improvement, to -14.4 vs. -18.8 in March, after yesterday’s report showed that the Manufacturing Index plunged to -23.4, as business conditions worsened.
Other data revealed that New Home Sales for March rose by 9.6%, exceeding 1.1% estimates, as increasing speculation that the Federal Reserve will pause its tightening cycle has kept mortgage rates stable.
Given the backdrop, the GBP/USD extended its losses due to risk aversion, even though US Treasury bond yields are plunging. Conversely, the greenback is rising 0.48%, as shown by the US Dollar Index at 101.815.
Across the pond, the UK agenda revealed the CBI Industrial Trend Order, which stood at -20, neither improving nor worsening, though flashed that the economy is stagnating. Meanwhile, the Bank of England (BoE) Governor Ben Broadbent commented that there’s no evidence that QE sparked the jump in inflation.
Of late, the BoE Chief Economist Huw Pill commented that British people need to accept that they are “poorer.” Pill added that recent events call for higher rates and foresees UK’s inflation would dip to 2% in two years.
From a technical perspective, the GBP/USD appears to have formed a head-and-shoulders chart pattern that could drive prices to test the confluence of the 100 and 200-day EMAs at around 1.2170. But firstly, the GBP/USD must break below the head-and-shoulders neckline at approximately 1.2360/70, so it could confirm its validity. If that scenario plays out, the GBP/USD next support would be the 50-day EMA at 1.2289 and then the 1.2200 figure. Conversely, if GBP/USD stays above 1.2400, it could pave the way for a bullish continuation towards 1.2500.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2405 at the time of writing. Pair opened at 1.2485 and is trading with a change of -0.64 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2405 |
| 1 | Today Daily Change | -0.0080 |
| 2 | Today Daily Change % | -0.6400 |
| 3 | Today daily open | 1.2485 |
The pair is trading below its 20 Daily moving average @ 1.2422, above its 50 Daily moving average @ 1.2217 , above its 100 Daily moving average @ 1.2201 and above its 200 Daily moving average @ 1.193
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2422 |
| 1 | Daily SMA50 | 1.2217 |
| 2 | Daily SMA100 | 1.2201 |
| 3 | Daily SMA200 | 1.1930 |
The previous day high was 1.2486 while the previous day low was 1.2411. The daily 38.2% Fib levels comes at 1.2457, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.244, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.2435, 1.2385, 1.236
- Pivot resistance is noted at 1.2511, 1.2536, 1.2586
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2486 |
| Previous Daily Low | 1.2411 |
| Previous Weekly High | 1.2474 |
| Previous Weekly Low | 1.2354 |
| Previous Monthly High | 1.2424 |
| Previous Monthly Low | 1.1803 |
| Daily Fibonacci 38.2% | 1.2457 |
| Daily Fibonacci 61.8% | 1.2440 |
| Daily Pivot Point S1 | 1.2435 |
| Daily Pivot Point S2 | 1.2385 |
| Daily Pivot Point S3 | 1.2360 |
| Daily Pivot Point R1 | 1.2511 |
| Daily Pivot Point R2 | 1.2536 |
| Daily Pivot Point R3 | 1.2586 |
[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group
