#GBPUSD @ 1.24377 grinds higher at weekly top after four-day uptrend. (Pivot Orderbook analysis)
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- GBP/USD grinds higher at weekly top after four-day uptrend.
- Recent data, BoE talks underpin concerns of UK’s sticky inflation, suggest more rate lifts from “Old Lady”.
- Hopes of debt ceiling deal passage in US House, mixed US data prod US Dollar bulls after refreshing DXY peak.
- US ADP Employment Change, PMIs in focus for clear directions.
The pair currently trades last at 1.24377.
The previous day high was 1.2447 while the previous day low was 1.2327. The daily 38.2% Fib levels comes at 1.2401, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2373, expected to provide support.
GBP/USD bulls stay in the driver’s seat for the fifth consecutive day, despite the Asian-session latest inaction around 1.2440 during early Thursday. In doing so, the Cable pair not only cheers the latest retreat of the US Dollar but also benefits from the hints that the UK’s inflation problem are bigger and can push the Bank of England (BoE) towards more rate hikes.
On Wednesday, Lloyds Bank unveiled monthly releases of its business sentiment gauge and inflation signals for May. On the same line, Bank of England (BoE) Monetary Policy Committee member Catherine Mann said that the gap between the headline and core inflation in the UK is more persistent than in the US and the Euro area, per Reuters.
On the other hand, the US Dollar Index (DXY) initially rose to the highest levels since March 15 before retreating from 104.70. The greenback’s latest pullback could be linked to the recently mixed US data and receding fears that the US will default in its government debt payment.
The hope of US debt ceiling passage from the House of Representatives increased after US Senate Republican Leader McConnell conveyed expectations of the US debt ceiling bill passing and reaching the Senate on Thursday.
Elsewhere, US JOLTS Job Openings rose to 10.103M in April versus 9.375M expected and 9.745M prior whereas Chicago Purchasing Managers’ Index dropped to 40.4 for May from 48.6 prior and 47.0 market forecasts.
It should be noted that the mixed comments from the Federal Reserve (Fed) officials also weighed on the US Dollar during late Wednesday. That said, Federal Reserve (Fed) Governor Michelle Bowman cited recovery in the residential real estate market while also adding, “The levelling out of home prices will have implications for the Fed’s fight to lower inflation,” per Reuters. Prior to him, Clevland Fed President Loretta Mester suggested that the Fed must go for a rate hike in June.
Also read: US ADP Employment, ISM Manufacturing PMI Preview: First down, then up for US Dollar?
Despite the GBP/USD pair’s successful recovery from the 100-DMA support of around 1.2300, the buyers need validation from the 50-DMA hurdle of near 1.2450.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2439 at the time of writing. Pair opened at 1.2414 and is trading with a change of 0.2 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2439 |
| 1 | Today Daily Change | 0.0025 |
| 2 | Today Daily Change % | 0.2000 |
| 3 | Today daily open | 1.2414 |
The pair is trading below its 20 Daily moving average @ 1.248, below its 50 Daily moving average @ 1.2441 , above its 100 Daily moving average @ 1.2292 and above its 200 Daily moving average @ 1.1984
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2480 |
| 1 | Daily SMA50 | 1.2441 |
| 2 | Daily SMA100 | 1.2292 |
| 3 | Daily SMA200 | 1.1984 |
The previous day high was 1.2447 while the previous day low was 1.2327. The daily 38.2% Fib levels comes at 1.2401, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2373, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.2345, 1.2276, 1.2226
- Pivot resistance is noted at 1.2465, 1.2516, 1.2585
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2447 |
| Previous Daily Low | 1.2327 |
| Previous Weekly High | 1.2472 |
| Previous Weekly Low | 1.2308 |
| Previous Monthly High | 1.2584 |
| Previous Monthly Low | 1.2275 |
| Daily Fibonacci 38.2% | 1.2401 |
| Daily Fibonacci 61.8% | 1.2373 |
| Daily Pivot Point S1 | 1.2345 |
| Daily Pivot Point S2 | 1.2276 |
| Daily Pivot Point S3 | 1.2226 |
| Daily Pivot Point R1 | 1.2465 |
| Daily Pivot Point R2 | 1.2516 |
| Daily Pivot Point R3 | 1.2585 |
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