#GBPUSD @ 1.26153 bulls are struggling in the wake of a US Dollar comeback. (Pivot Orderbook analysis)

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• GBP/USD bulls are struggling in the wake of a US Dollar comeback.
• All eyes now turn to the BoE after the US CPI event on Wednesday.

The pair currently trades last at 1.26153.

The previous day high was 1.264 while the previous day low was 1.2578. The daily 38.2% Fib levels comes at 1.2616, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2602, expected to provide support.

GBP/USD is flat on the day after a turbulent time with the pair trading between a low of 1.2602 and a high of 1.2679. The volatility has been sparked by the US Consumer Price Index, CPI, in the New York open.

Headline CPI growth in the US ended lower to 4.9% in April from 5% in March. ‘Core’ inflation excluding food and energy products also moderated, to 5.5% from 5.6% in March.

´´Inflation trends in the US continue to head the right direction, but still have a long way to go before they reach the Fed’s 2% target. Labour market conditions still look strong, but are showing cracks under the surface, and tension remains among regional banking credit markets,´´ analysts at RBC Economics said.

´´Increasingly, we expect the Federal Reserve will have to balance risks between sticky inflation, and slowing growth momentum / tighter financial conditions. We continue to expect the move last week to be the last one this cycle, leaving the Fed on hold until later this year.´´

Consequently, the US dollar has found a bid after the initial sell-off and this is weighing on GBP/USD in late trade in the New York session. Meanwhile, eyes will now turn to

Meanwhile, we have the next key event for GBP with the Bank of England. ´´We expect another 25bps hike in Bank Rate to 4.50%, with guidance left unchanged, meaning that the MPC will hike rates again should data justify it,´´ analysts at TD Securities said.

´´We think it will, and expect one final 25bps hike in June to a terminal of 4.75%.´´

´´Much will hinge on the US CPI report in the near-term, but keep in mind that GBP has a propensity sell-off on BoE meetings since they started to hike last year,´´ the analysts explained.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2614 at the time of writing. Pair opened at 1.2621 and is trading with a change of -0.06 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2497, 50 SMA 1.2325, 100 SMA @ 1.2235 and 200 SMA @ 1.1954.

The previous day high was 1.264 while the previous day low was 1.2578. The daily 38.2% Fib levels comes at 1.2616, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2602, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2586, 1.2551, 1.2525
• Pivot resistance is noted at 1.2648, 1.2675, 1.2709

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