GBPUSD rises 0.31% as traders await US economic data releases

GBPUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	0.31%	40.6 Pips
Week to-date	0.42%	54.4 Pips
October	-2.72%	-363.7 Pips

Upcoming key events (London Time)

Wed 12:30 PM USD GDP annual rate
Thu 12:30 PM USD PCE Price Index, excluding food and energy (12-mth)

What happened lately

On Tuesday, the foreign exchange market saw an increase in the GBPUSD pair, with the British Pound rising by 0.31% against the US Dollar to reach a trading rate of 1.30126. This change in the exchange rate reflects a subtle yet positive shift for the pound sterling, suggesting a moderate level of confidence among traders in the UK’s economic outlook in the absence of significant negative economic news or developments. Such movements in currency pairs can often be driven by trader sentiment and market positioning, as well as anticipatory behaviors in response to upcoming economic indicators and reports.

In the United States, two high-impact economic reports are scheduled to be released shortly. On Wednesday at 12:30 PM, the Gross Domestic Product (GDP) annual rate figures will be reported. This data will provide insights into the economic performance of the US, indicating growth or contraction in a pivotal economic period. Furthermore, on Thursday, also at 12:30 PM, the Personal Consumption Expenditures (PCE) Price Index, excluding food and energy, will be released. This index is a crucial inflation measure, offering insights into consumer price changes and influencing the Federal Reserve’s monetary policy decisions. Both reports have typically strong impacts on financial markets as they offer detailed views of economic conditions and can affect interest rate discussions among policymakers.

Given these upcoming events, the GBPUSD exchange rate may experience volatility depending on the outcomes of the US economic data. Positive US GDP numbers or higher-than-expected PCE Index results could potentially strengthen the US Dollar, exerting downward pressure on the GBPUSD pair, as these would suggest a robust US economy and possibly lead to hawkish monetary policy sentiment. Conversely, if the data disappoints market expectations, it could weaken the US Dollar against the Pound, potentially boosting the GBPUSD rate. As such, market participants in the forex market will likely keep a close watch on these reports to make informed trading decisions based on economic indicators’ results as provided by the respective reporting agencies.

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What can we expect from GBPUSD today?

GBPUSD on Tuesday rose 0.31% to 1.30126. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for GBPUSD looks bullish as the pair ended higher after Tuesday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 1.30339 with break above could target R2 at 1.30551 or figure level area. While towards the downside, we are looking at daily low of 1.29576 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.30170 may suggest continuation after recent positive movement.

For the week to-date, take note that GBPUSD is mixed as compared to the prior week.

Key levels to watch out:

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