#GBPUSD @ 1.24371 rate hovers above the 1.2400 mark after the last week’s USD boost from stronger-than-expected jobs data. (Pivot Orderbook analysis)
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- GBP/USD rate hovers above the 1.2400 mark after the last week’s USD boost from stronger-than-expected jobs data.
- US economic indicators reveal a mixed story, with weakening factory orders and a fall in Non-Manufacturing PMI.
- UK outpaces expectations with S&P Global Services and Composite PMIs, adding pressure on the Bank of England to address inflation concerns.
The pair currently trades last at 1.24371.
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.
GBP/USD trims some of its losses but remains trading below its opening price; after the latest week, robust jobs reports boosted the American Dollar (USD), but Monday’s agenda capped the USD gains. Therefore, the GBP/USD is exchanging hands at 1.2440, 0.04% below its opening price but higher than the day’s low of 1.2368.
Last week, the US Bureau of Labor Statistics (BLS) revealed May’s data, showing the creation of more than 300K jobs, thought flashed the Unemployment Rate at 3.7%, sought by the US Federal Reserve (Fed), as a sign the economy is cooling and unexpectedly boosted the US Dollar (USD), as the GBP/USD retreated last Thursday¿s gains.
But on Monday, the story is different as Factory Orders in the US weakened, from 0.6% to 0.4% in May, less than estimations. Core Orders, excluding transportation, plummeted 0.2% but improved compared with March’s 0.7% drop. At the same time, the Institute for Supply Management (ISM) revealed that the Non-Manufacturing PMI fell to 50.9 from April’s 51.9, portraying that the economy is weakening.
After the data was released, the greenback weakened, as shown by the US Dollar Index (DXY), which tracks the buck’s value vs. a basket of peers. The DXY d down 0.09%, at 103.947, failing to crack the 104.000 mark, weighed by falling US Treasury bond yields. The US 10-year Treasury bond yield drops two basis points, at 3.677%.
On the UK front, the S&P Global Services and Composite PMIs beat estimates, with the Services Index registering a 55.2, exceeding forecasts of 55.1, though less than April’s 55.9. However, price input pressures rose the most in three months, with wages being the main reason. That would keep the Bank of England (BoE) pressured to deliver further tightening as inflation proves to be stickier than expected.
Given the fundamental backdrop, the GBP/USD is neutral to upward biased. In fact, today’s price action forming a gravestone doji or a hammer would put the 1.2500 figure into play. Still, traders must reclaim the 20-day Exponential Moving Average (EMA) resistance at 1.2442, followed by 1.2450. Once cleared, that could pave the way towards 1.2500. Conversely, the GBP/USD first support would be the 1.2400 figure, followed by the current week’ slow of 1.2368.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2442 at the time of writing. Pair opened at 1.245 and is trading with a change of -0.06 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2442 |
| 1 | Today Daily Change | -0.0008 |
| 2 | Today Daily Change % | -0.0600 |
| 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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