#GBPUSD @ 1.25811 is showing a sideways performance around 1.2570 ahead of the release of the US NFP data. (Pivot Orderbook analysis)
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- GBP/USD is showing a sideways performance around 1.2570 ahead of the release of the US NFP data.
- The street is worried that renewed US banking crisis could dent the financial lending system.
- UK businesses are comfortably passing the impact of higher employment costs to ultimate consumers.
The pair currently trades last at 1.25811.
The previous day high was 1.259 while the previous day low was 1.2464. The daily 38.2% Fib levels comes at 1.2542, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2512, expected to provide support.
The GBP/USD pair is demonstrating a back-and-forth action around 1.2570 in the early Asian session. The Cable has turned sideways as investors are awaiting the release of the United States Nonfarm Payrolls (NFP) data for further guidance. The US Dollar Index (DXY) has extended its recovery to near 101.45 as investors are worried that upbeat employment data could force the Federal Reserve (Fed) to continue its policy-tightening spell.
S&P500 futures have added some gains in Asia after three consecutive bearish settlements, portraying a minor recovery in the risk-on impulse. The street is worried that renewed US banking crisis could dent the financial lending system and impacts the confidence of investors. Therefore, the optimism about Fed’s neutral interest rate guidance has faded.
A preliminary US NFP report (April) shows that the economy added 179K jobs in April, lower than former additions of 236K. The Unemployment Rate is seen unchanged at 3.5%. Apart from them, the major catalyst will be Average Hourly Earnings data. Monthly and annual Average Hourly Earnings may remain steady at 0.3% and 4.2% respectively.
This indicates that the labor market conditions are still tight and the bargaining power is in the favor of job seekers. Higher earnings would allow households to make decent purchases, which will keep propelling inflationary pressures. If Fed says that further action will be more data-dependent then sticky wages could maintain pressure on the Fed for making monetary policy more restrictive.
On the Pound Sterling front, United Kingdom’s final S&P Global/CIPS Services PMI rose to 55.9 from 52.9 in March. Reuters reported that UK businesses are comfortably passing the impact of higher employment costs to ultimate consumers. The context is expected to create more troubles for the Bank of England (BoE), which is even struggling to bring down inflation from double-digit figures.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2575 at the time of writing. Pair opened at 1.2563 and is trading with a change of 0.1 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2575 |
| 1 | Today Daily Change | 0.0012 |
| 2 | Today Daily Change % | 0.1000 |
| 3 | Today daily open | 1.2563 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2458, 50 SMA 1.2277, 100 SMA @ 1.2217 and 200 SMA @ 1.1946.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2458 |
| 1 | Daily SMA50 | 1.2277 |
| 2 | Daily SMA100 | 1.2217 |
| 3 | Daily SMA200 | 1.1946 |
The previous day high was 1.259 while the previous day low was 1.2464. The daily 38.2% Fib levels comes at 1.2542, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2512, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.2488, 1.2412, 1.2361
- Pivot resistance is noted at 1.2615, 1.2666, 1.2741
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2590 |
| Previous Daily Low | 1.2464 |
| Previous Weekly High | 1.2584 |
| Previous Weekly Low | 1.2387 |
| Previous Monthly High | 1.2584 |
| Previous Monthly Low | 1.2275 |
| Daily Fibonacci 38.2% | 1.2542 |
| Daily Fibonacci 61.8% | 1.2512 |
| Daily Pivot Point S1 | 1.2488 |
| Daily Pivot Point S2 | 1.2412 |
| Daily Pivot Point S3 | 1.2361 |
| Daily Pivot Point R1 | 1.2615 |
| Daily Pivot Point R2 | 1.2666 |
| Daily Pivot Point R3 | 1.2741 |
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