#GBPUSD @ 1.23417 has shown recovery from 1.2330 however, the downside bias seems solid. (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 has shown recovery from 1.2330 however, the downside bias seems solid.
• Investors are entirely focusing on the US debt-ceiling issues rather than dovish cues From FOMC minutes.
• UK Hunt remained confident that inflation will get halved by the year-end.

The pair currently trades last at 1.23417.

The previous day high was 1.247 while the previous day low was 1.2358. The daily 38.2% Fib levels comes at 1.2401, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2427, expected to provide resistance.

The GBP/USD pair has shown some recovery after printing a fresh six-week low at 1.2332 in the early European session. The Cable is expected to resume its downside journey after a less-confident pullback as investors have underpinned the risk-aversion theme due to the pending US debt-ceiling raise.

S&P500 futures have trimmed some gains added in early Asia as investors are getting cautious that the United States economy could announce a default in obligated payments if the US borrowing cap doesn’t get raised before June 01.

The US Dollar Index (DXY) is looking to extend its upside further after refreshing its two-week high at 104.06. It seems that investors are entirely focusing on the US debt-ceiling issues rather than dovish cues for interest rate guidance in the Federal Open Market Committee (FOMC) minutes. Several Federal Reserve (Fed) policymakers see interest rate hikes in June’s monetary policy less certain amid US banking turmoil.

Meanwhile, Atlanta Federal Reserve (Fed) President Raphael Bostic has advocated that the central bank should remain data-specific for June’s monetary policy meeting. He further added that no consideration of an interest rate cut well in 2024 would be the best-case scenario.

On the Pound Sterling front, United Kingdom inflationary pressures remained mixed on Wednesday as the headline Consumer Price Index (CPI) softened but remained well above consensus while core inflation escalates further. This might force the Bank of England (BoE) to announce more interest rates ahead.

However, UK FM Jeremy Hunt remained confident that inflation will get halved by the year-end. And tax cuts could be announced only in an inflation-supportive environment.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2342 at the time of writing. Pair opened at 1.2364 and is trading with a change of -0.18 % .

The pair is trading below its 20 Daily moving average @ 1.251, below its 50 Daily moving average @ 1.2427 , above its 100 Daily moving average @ 1.2281 and above its 200 Daily moving average @ 1.1974

The previous day high was 1.247 while the previous day low was 1.2358. The daily 38.2% Fib levels comes at 1.2401, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2427, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2325, 1.2286, 1.2214
• Pivot resistance is noted at 1.2437, 1.2509, 1.2548

[/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