#GBPUSD @ 1.24723 regains positive traction on Wednesday amid the emergence of fresh USD selling. (Pivot Orderbook analysis)
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- GBP/USD regains positive traction on Wednesday amid the emergence of fresh USD selling.
- A slight improvement in the global risk sentiment is seen weighing on the safe-haven buck.
- The upbeat US Durable Goods Orders fail to impress the USD bulls or provide any impetus.
The pair currently trades last at 1.24723.
The previous day high was 1.2507 while the previous day low was 1.2387. The daily 38.2% Fib levels comes at 1.2433, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2461, expected to provide support.
The GBP/USD pair sticks to its strong intraday gains, around the 1.2465-1.2470 area through the early North American session and moves little in reaction to the US macro data.
The US Census Bureau reported this Wednesday that Durable Goods Orders in the US smashed market expectations by a big margin and increased by 3.2% in March. Excluding transportation, new orders increased 0.3% during the reported month as against consensus estimates pointing to a 0.2% fall and the 0.3% decline registered in March. The upbeat data, however, fails to impress the US Dollar (USD) bulls or provide any meaningful impetus to the GBP/USD pair.
Meanwhile, a slight improvement in the global risk sentiment – as depicted by a modest uptick in the US equity futures – is seen weighing on the safe-haven Greenback amid speculations for an imminent rate cut by the Federal Reserve (Fed) later this year. Apart from this, rising bets for another 25 bps interest rate hike by the Bank of England (BoE) in May continue to underpin the British Pound and remains supportive of the strong bid tone surrounding the GBP/USD pair.
That said, a modest uptick in the US Treasury bond yields might hold back bearish traders from placing aggressive bets around the USD and keep a lid on any further gains for the major, at least for the time being. Investors also seem reluctant and could move to the sidelines ahead of the US Q1 GDP report on Thursday. This will be followed by the release of the US Core PCE Price Index – the Fed preferred inflation gauge on Friday.
The data will play a key role in influencing the near-term USD price dynamics and should provide some meaningful impetus to the GBP/USD pair. Nevertheless, the intraday positive move assists spot prices to reverse a major part of the previous day’s retracement slide from over a one-week high – levels just above the 1.2500 psychological mark – and is exclusively sponsored by the prevalent USD selling bias.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.247 at the time of writing. Pair opened at 1.2408 and is trading with a change of 0.5 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2470 |
| 1 | Today Daily Change | 0.0062 |
| 2 | Today Daily Change % | 0.5000 |
| 3 | Today daily open | 1.2408 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2426, 50 SMA 1.2221, 100 SMA @ 1.2204 and 200 SMA @ 1.1932.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2426 |
| 1 | Daily SMA50 | 1.2221 |
| 2 | Daily SMA100 | 1.2204 |
| 3 | Daily SMA200 | 1.1932 |
The previous day high was 1.2507 while the previous day low was 1.2387. The daily 38.2% Fib levels comes at 1.2433, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2461, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.2361, 1.2314, 1.224
- Pivot resistance is noted at 1.2481, 1.2554, 1.2601
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2507 |
| Previous Daily Low | 1.2387 |
| Previous Weekly High | 1.2474 |
| Previous Weekly Low | 1.2354 |
| Previous Monthly High | 1.2424 |
| Previous Monthly Low | 1.1803 |
| Daily Fibonacci 38.2% | 1.2433 |
| Daily Fibonacci 61.8% | 1.2461 |
| Daily Pivot Point S1 | 1.2361 |
| Daily Pivot Point S2 | 1.2314 |
| Daily Pivot Point S3 | 1.2240 |
| Daily Pivot Point R1 | 1.2481 |
| Daily Pivot Point R2 | 1.2554 |
| Daily Pivot Point R3 | 1.2601 |
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