#GBPUSD @ 1.24711 takes offers to pare the biggest daily gain in three weeks, prints minor losses of late. (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)]
- GBP/USD takes offers to pare the biggest daily gain in three weeks, prints minor losses of late.
- Mixed sentiment, concerns about US default and mostly upbeat US data allow Cable to retreat.
- US Dollar struggles for clear direction amid cautious mood ahead of US Q1 GDP, dicey market elsewhere.
The pair currently trades last at 1.24711.
The previous day high was 1.2516 while the previous day low was 1.2403. The daily 38.2% Fib levels comes at 1.2472, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2446, expected to provide support.
GBP/USD struggles to defend the previous day’s gains, the heaviest in three weeks, as the US Dollar buyers turn cautious ahead of the key US Q1 GDP. That said, the Pound Sterling remains mildly offered around 1.2465 amid early Thursday.
Markets turn dicey as traders take a breather after a volatile day, especially amid mixed updates and a cautious mood before important US growth data.
Talking about the key risk catalysts, the US House of Representatives passes a bill that enables the government to negotiate the extension of the debt ceiling. However, the policymakers are likely to remain at loggerheads amid the wide difference between the Republicans’ and Democrats’ demands. On the same line, the latest tax receipt numbers from the US allow Goldman Sachs (GS) to expect that the US Treasury Department can avoid the risk of a federal payments default till late July.
On a different page, the UK policymakers criticize the passages of the illegal migration bill, as well as the Tory government’s Brexit move. Additionally challenging the GBP/USD pair could be the political turmoil challenging UK Prime Minister (PM) Rishi Sunak on an ethical basis.
It’s worth noting that mixed US data and equity market performance also trouble the GBP/USD pair as the US Durable Goods Orders rose but the details of Consumer Confidence eased. Furthermore, the tech giants allowed Nasdaq to remain firmer but the escalating fears from the First Republic Bank (FRB), due to another 20% share price fall on Wednesday following a 50% slump the previous day weigh on the sentiment.
Amid these plays, US Treasury bond yields remain directionless while the S&P 500 Futures print mild gains of 0.20% around 4,083 by the press time, following a mixed close of Wall Street.
Moving on, GBP/USD may witness further grinding as markets turn dicey ahead of the key US first quarter (Q1) Gross Domestic Product (GDP), expected to ease to 2.0% on an annualized basis versus 2.6% prior. However, the Cable buyers are likely running out of steam and hence any positive surprise from the US data can allow the bears to sneak in.
A three-week-old bearish triangle formation, currently between 1.2525 and 1.2415, keeps the GBP/USD sellers hopeful.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2466 at the time of writing. Pair opened at 1.247 and is trading with a change of -0.03% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2466 |
| 1 | Today Daily Change | -0.0004 |
| 2 | Today Daily Change % | -0.03% |
| 3 | Today daily open | 1.247 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2434, 50 SMA 1.223, 100 SMA @ 1.2206 and 200 SMA @ 1.1934.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2434 |
| 1 | Daily SMA50 | 1.2230 |
| 2 | Daily SMA100 | 1.2206 |
| 3 | Daily SMA200 | 1.1934 |
The previous day high was 1.2516 while the previous day low was 1.2403. The daily 38.2% Fib levels comes at 1.2472, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2446, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.241, 1.235, 1.2297
- Pivot resistance is noted at 1.2522, 1.2575, 1.2635
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2516 |
| Previous Daily Low | 1.2403 |
| Previous Weekly High | 1.2474 |
| Previous Weekly Low | 1.2354 |
| Previous Monthly High | 1.2424 |
| Previous Monthly Low | 1.1803 |
| Daily Fibonacci 38.2% | 1.2472 |
| Daily Fibonacci 61.8% | 1.2446 |
| Daily Pivot Point S1 | 1.2410 |
| Daily Pivot Point S2 | 1.2350 |
| Daily Pivot Point S3 | 1.2297 |
| Daily Pivot Point R1 | 1.2522 |
| Daily Pivot Point R2 | 1.2575 |
| Daily Pivot Point R3 | 1.2635 |
[/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
