#GBPUSD @ 1.23902 has delivered a breakdown below 1.2400 as investors get hopeful for a hawkish Fed policy post robust US NFP. (Pivot Orderbook analysis)
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- GBP/USD has delivered a breakdown below 1.2400 as investors get hopeful for a hawkish Fed policy post robust US NFP.
- Considering the persistence of UK inflation, the BoE might fail to halve inflation by year-end as promised by UK PM Rishi Sunak.
- GBP/USD witnessed intense selling pressure after failing to surpass the 61.8% Fibo retracement at 1.2583.
The pair currently trades last at 1.23902.
The previous day high was 1.2545 while the previous day low was 1.2442. The daily 38.2% Fib levels comes at 1.2481, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2505, expected to provide resistance.
The GBP/USD pair has slipped sharply below the round-level support of 1.2400 in the European session. The Cable is facing immense selling pressure as the US Dollar has been strengthened after robust payroll additions in the United States in May fetched interest rate hike bets into the picture.
Additions of fresh Employment in May were extremely solid despite the Federal Reserve (Fed) consistently raising interest rates and US regional banks have inculcated more filters into their credit disbursement mechanism to maintain their asset quality amid a turbulent environment.
The Pound Sterling is failing in holding its feet despite the Bank of England (BoE) being expected to raise interest rates further amid a tight labor market and persistent food inflation. Considering the persistence in United Kingdom inflation, BoE Governor Andrew Bailey might fail to halve inflation by year-end as promised by UK Prime Minister Rishi Sunak.
GBP/USD witnessed intense selling pressure after failing to surpass the 61.8% Fibonacci retracement (plotted from May 10 high at 1.2680 to May 25 low at 1.2308) at 1.2583. At the press time, the Cable dropped below the 23.6% Fibo retracement at around 1.2400. The asset has also surrendered the support from the upward-sloping trendline placed from May 25 low at 1.2308.
The Relative Strength Index (RSI) (14) is hovering near 40.00. A breakdown below the same would activate the bearish momentum.
Should the asset break below May 31 low at 1.2348, US Dollar bulls would drag the asset toward May 25 low at 1.2308. Slippage below the latter would expose the asset to April 03 low at 1.2275.
On the flip side, a confident break above May 16 high at 1.2547 will drive the Cable towards May 10 low at 1.2603 followed by May 10 high at 1.2680.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2389 at the time of writing. Pair opened at 1.245 and is trading with a change of -0.49 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2389 |
| 1 | Today Daily Change | -0.0061 |
| 2 | Today Daily Change % | -0.4900 |
| 3 | Today daily open | 1.2450 |
The pair is trading below its 20 Daily moving average @ 1.2463, below its 50 Daily moving average @ 1.2453 , above its 100 Daily moving average @ 1.23 and above its 200 Daily moving average @ 1.1994
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2463 |
| 1 | Daily SMA50 | 1.2453 |
| 2 | Daily SMA100 | 1.2300 |
| 3 | Daily SMA200 | 1.1994 |
The previous day high was 1.2545 while the previous day low was 1.2442. The daily 38.2% Fib levels comes at 1.2481, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2505, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.2413, 1.2376, 1.2309
- Pivot resistance is noted at 1.2516, 1.2582, 1.2619
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2545 |
| Previous Daily Low | 1.2442 |
| Previous Weekly High | 1.2545 |
| Previous Weekly Low | 1.2327 |
| Previous Monthly High | 1.2680 |
| Previous Monthly Low | 1.2308 |
| Daily Fibonacci 38.2% | 1.2481 |
| Daily Fibonacci 61.8% | 1.2505 |
| Daily Pivot Point S1 | 1.2413 |
| Daily Pivot Point S2 | 1.2376 |
| Daily Pivot Point S3 | 1.2309 |
| Daily Pivot Point R1 | 1.2516 |
| Daily Pivot Point R2 | 1.2582 |
| Daily Pivot Point R3 | 1.2619 |
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