GBPUSD Analysis
| Week Ending 2024-12-06 | |||
| Open | High | Low | Close |
| 1.27 | 1.28 | 1.26 | 1.27 |
| Performance | |||||
| Period | Pct | Chg | Momentum | ||
| Friday | -0.14% | -17.9 Pips |  |
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| Week 2024-12-06 | 0.31% | 39.8 Pips | |
||
| December | 0.35% | 44.6 Pips |  |
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Upcoming key events for the new week (London Time)
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)
What happened over the week
The United States witnessed a mixed set of economic indicators in December. The Index of Consumer Sentiment increased to 74 points, climbing from the previous month’s 71.8, as per the University of Michigan. However, the U.S. Index of Consumer Expectations slightly declined to 3.1% from 3.2% in November. Average Hourly Earnings showed stable growth, marking a 4% increase annually for November, consistent with October’s statistics, according to the Bureau of Labor Statistics. Nonfarm Payroll Employment saw a substantial rise to 227,000 in November, an upward revision from 36,000 in October. Despite this, the unemployment rate increased slightly to 4.2% from the previous 4.1%. Initial unemployment claims for the week ended 30th November rose to 224,000, up from the revised figure of 215,000, indicating labor market challenges.
Manufactured goods orders grew by 0.2% in October, recovering from a revised -0.2% decline in September. Additionally, the Job Openings and Labor Turnover Survey reported an increase in job openings to 7.744 million in October from September’s revised 7.372 million.
The GBPUSD experienced a slight decline of 0.14% to 1.27414 on Friday but maintained a weekly increase of 0.31%, achieving a three-week high as it rose for the second consecutive week. With upcoming high-impact U.S. events such as the CPI Inflation Rate and PPI excluding Food and Energy sectors, alongside medium-impact events like Initial Unemployment Insurance Claims, the GBPUSD pair remains sensitive. If the forthcoming U.S. data indicates stronger inflation and robust labor market conditions, it could bolster the U.S. dollar, exerting downward pressure on the GBPUSD. Conversely, weaker data might prompt the GBP to recover or gain against the dollar.
From X (Twitter)
The BRC-@KMPG Retail Sales Monitor for November is published today. It shows sales decreasing, mainly due to a later Black Friday this year.📉
Read the thoughts of CEO, Helen Dickinson, below.👇https://t.co/nTPH6CaVJh pic.twitter.com/yKEEy4eEti
— The British Retail Consortium (@the_brc) December 3, 2024
What can we expect from GBPUSD for the new week and what happened on Friday?
GBPUSD on Friday dropped -0.14% to 1.27. Price is above 9-Day EMA while Stochastic is rising. For the week ending 2024-12-06, the pair rose 0.31% or 39.8 pips higher.
Looking ahead, GBPUSD looks mixed as the pair is likely to consolidate above week low of 1.26.
For the new week, our technical outlook is mixed. To see upside interest, we prefer to look at price breakout of week high of 1.28 or at least consolidates above Weekly Pivot level of 1.27. On the downside, we are looking at week low 1.26 or 1.26 (WS1) as immediate support level. GBPUSD need to break on either side to indicate a short-term bias. A break above 1.28 would suggest bullish bias after recent positive movement.
For the month of December, GBPUSD is up by 0.35% or 44.6 pips higher.
Weekly key levels to watch out:
| R3 | 1.30 |
| R2 | 1.29 |
| R1 | 1.28 |
| Weekly Pivot | 1.27 |
| S1 | 1.26 |
| S2 | 1.26 |
| S3 | 1.25 |
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