#GBPUSD @ 1.21709 ticks higher on Wednesday amid subdued USD demand, albeit lacks follow-through.

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• GBP/USD ticks higher on Wednesday amid subdued USD demand, albeit lacks follow-through.

The pair currently trades last at 1.21709.

The previous day high was 1.2289 while the previous day low was 1.2154. The daily 38.2% Fib levels comes at 1.2205, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2237, expected to provide resistance.

The GBP/USD pair attracts some dip-buying during the Asian session on Wednesday and for now, seems to have stalled the previous day’s retracement slide from the vicinity of the 1.2300 mark, or a near two-week high. Spot prices manage to hold above the 1.2150 level in the wake of subdued US Dollar (USD) price action, though lack bullish conviction.

Retreating US Treasury bond yields, along with a generally positive risk tone, fail to assist the safe-haven Greenback to build on the previous day’s solid rebound from over a one-month low, which, in turn, is seen as a key factor acting as a tailwind for the GBP/USD pair. The downside for the USD, however, remains cushioned on the back of signs that the US economy remains resilient despite a surge in interest rates, which should allow the Federal Reserve (Fed) to stick to its rate-hiking cycle to tame inflation.

The flash version of the US PMIs released on Tuesday showed that business activity in the manufacturing sector moved out of contraction territory for the first time in six months, and services activity accelerated modestly amid signs of easing inflationary pressures. In contrast, the UK PMIs remained in the contraction zone for the third consecutive month, fueling speculations that the Bank of England (BoE) could maintain the status quo in November. This holds back bulls from placing aggressive bets around the GBP/USD pair.

Moving ahead, there isn’t any relevant market-moving economic data due for release from the UK on Wednesday and the US economic docket only features the release of New Home Sales figures. Hence, investors will look to Fed Chair Jerome Powell’s speech later during the US session for cues about the future rate-hike path, which, in turn, will drive the USD demand and provide some impetus to the GBP/USD pair. The focus, meanwhile, will remain on the US Core PCE Price Index – the Fed’s preferred inflation gauge on Friday.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2166 at the time of writing. Pair opened at 1.216 and is trading with a change of 0.05 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.2184, 50 SMA 1.2389, 100 SMA @ 1.2582 and 200 SMA @ 1.2443.

The previous day high was 1.2289 while the previous day low was 1.2154. The daily 38.2% Fib levels comes at 1.2205, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2237, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2113, 1.2065, 1.1977
• Pivot resistance is noted at 1.2248, 1.2336, 1.2384

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