#GBPUSD @ 1.25115 licks its wounds after posting the biggest daily loss in seven weeks., @nehcap view: Limited downside expected (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 licks its wounds after posting the biggest daily loss in seven weeks.
• Downside break of two-month-old ascending trend line, bearish MACD signals favor Cable bears.
• Nearly oversold RSI (14), upward-sloping trend line from late March challenges the Pound Sterling sellers.
• First readings of the United Kingdom (UK) Gross Domestic Product (GDP) for the first quarter (Q1) of 2023 eyed as well.

The pair currently trades last at 1.25115.

The previous day high was 1.268 while the previous day low was 1.2603. The daily 38.2% Fib levels comes at 1.265, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2632, expected to provide resistance.

GBP/USD seesaws around 1.2515 during early Friday morning in Asia, after posting the biggest daily fall since March 07.

In doing so, the Cable pair justifies the downside break of a two-month-old ascending trend line, as well as bearish MACD signals. However, an upward-sloping trend line from late March, around 1.2500 round figure by the press time, joins the oversold RSI (14) line suggesting a corrective bounce in the GBP/USD price.

In a case where the GBP/USD remains weaker past 1.2500, the 200-bar SMA level of around 1.2470 will act as the last defense of the Cable pair buyers.

Meanwhile, the Pound Sterling’s corrective bounce needs to stay beyond the multi-day-old previous support line, close to 1.2540 at the latest, to convince the GBP/USD buyers.

Following that, a fortnight-old horizontal hurdle near 1.2580 and the recently flashed multi-month high of near 1.2680 could lure the Cable buyers.

Apart from the technical details, the first readings of the UK’s Q1 GDP, expected to print stagnant growth of 0.1% on QoQ but ease to 0.2% YoY versus 0.6% prior, will be the key for the GBP/USD traders to watch for clear directions.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2512 at the time of writing. Pair opened at 1.2626 and is trading with a change of -0.90% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2504, 50 SMA 1.2337, 100 SMA @ 1.224 and 200 SMA @ 1.1957.

The previous day high was 1.268 while the previous day low was 1.2603. The daily 38.2% Fib levels comes at 1.265, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2632, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2592, 1.2559, 1.2515
• Pivot resistance is noted at 1.2669, 1.2713, 1.2747

[/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