GBPUSD Analysis
| Week Ending 2024-11-08 | |||
| Open | High | Low | Close |
| 1.30 | 1.30 | 1.28 | 1.29 |
| Performance | |||||
| Period | Pct | Chg | Momentum | ||
| Friday | -0.4% | -51.9 Pips |  |
||
| Week 2024-11-08 | -0.27% | -34.5 Pips |  |
||
| November | 0.16% | 21.2 Pips |  |
||
Upcoming key events for the new week (London Time)
Mon 05:00 AM Veterans Day
Tue 07:00 AM Claimant Count Change Tue 07:00 AM Labour Force Survey Employment Change Wed 01:30 PM CPI Inflation Rate (12-mth) 
Thu 01:30 PM Initial Unemployment Insurance Claims Thu 01:30 PM PPI excluding Food and Energy sectors (12-mth) Thu 08:00 PM Federal Reserve Chair Jerome Powell speech Fri 07:00 AM GDP (3-mth) Fri 01:30 PM Monthly Retail Trade (1-mth)
What happened over the week
In the United States, the latest economic figures present a mixed picture. The University of Michigan reports an improvement in the Consumer Sentiment Index for November, rising to 73 points from the previous 70.5 points in October. This uptick in consumer sentiment suggests a more optimistic outlook among consumers. However, the Federal Reserve has decided to lower the Federal Funds Rate to 4.75% from 5%, reflecting a possible easing of monetary policy to support the economy. Additionally, the Bureau of Labor Statistics has revised the preliminary estimate for Q3 Unit Labor Costs to 2.4%, which, despite being higher than the initial 0.4%, is overshadowed by a decrease in Nonfarm Business Labor Productivity to 2.2% from 2.5% in Q2. Furthermore, the Department of Labor reported an increase in Initial Unemployment Insurance Claims to 221,000 in the first week of November, indicating potential pressures in the labor market. A marginal improvement in new orders for manufactured goods was observed in September, reducing the previous decline from -0.8% to -0.5%.
Meanwhile, in the United Kingdom, the Bank of England has also reduced its Bank Rate from 5% to 4.75%, aligning with the U.S. Federal Reserve’s policy move, perhaps reflecting similar economic challenges, such as inflationary pressures or sluggish economic growth. This interest rate adjustment comes as the country faces ongoing economic uncertainties and attempts to foster economic stability and growth moving forward.
The recent developments, most notably Donald Trump’s election as the 47th president of the United States, have had a significant impact on GBPUSD currency trading. On Friday, the currency pair fell by 0.4% to 1.29189, marking a 12-week low, however, it ended the week with a mixed outcome due to sterling’s strength against the euro. The changes in interest rates by both the U.S. and the U.K. central banks suggest a synchronized approach to monetary policy, potentially influencing investor confidence and affecting currency valuation. Upcoming high-impact economic events in both the U.S. and U.K. could further influence GBPUSD, depending on data outcomes such as CPI Inflation Rate, Unemployment Claims, and GDP and employment changes from the U.K.’s Labour Force Survey.
From X (Twitter)
The Monetary Policy Committee voted by a majority of 8-1 to reduce #BankRate to 4.75%. Find out more in our #MonetaryPolicyReport: https://t.co/lEYCgPolsz pic.twitter.com/bX4TpXQqB6
— Bank of England (@bankofengland) November 7, 2024
What can we expect from GBPUSD for the new week and what happened on Friday?
GBPUSD on Friday dropped -0.4% to 1.29. Price is below 9-Day EMA while Stochastic is falling. For the week ending 2024-11-08, the pair dropped -0.27% or -34.5 pips lower.
Looking ahead, GBPUSD looks bearish as the pair posted lower in Friday trading session.
For the new week, our technical outlook is mixed. To see upside interest, we prefer to look at price breakout of week high of 1.30 or at least consolidates above Weekly Pivot level of 1.29. On the downside, we are looking at week low 1.28 or 1.28 (WS1) as immediate support level. GBPUSD need to break on either side to indicate a short-term bias. A close below week low of 1.28 would indicate selling pressure.
For the month of November, GBPUSD is up by 0.16% or 21.2 pips higher.
Weekly key levels to watch out:
| R3 | 1.32 |
| R2 | 1.31 |
| R1 | 1.30 |
| Weekly Pivot | 1.29 |
| S1 | 1.28 |
| S2 | 1.27 |
| S3 | 1.26 |
You might also be interested in:
Monthly Wholesale Trade: Sales and Inventories Source: Census Bureau Federal Reserve issues FOMC statement Source: Federal Reserve U.S. International Trade in Goods and Services, September 2024 Source: Bureau of Economic Analysis U.S. International Trade in Goods and Services Source: Census Bureau Manufacturers’ Shipments, Inventories, and Orders Source: Census Bureau