Gbpusd rises amid US economic data indicating a slowdown in job and manufacturing sectors

GBPUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	0.51%	63.2 Pips
Week to-date	0.15%	18.6 Pips
February	0.43%	53.5 Pips

Upcoming key events (London Time)

Thu 12:00 PM GBP Bank of England Interest Rate Decision (Bank Rate)

What happened lately

In the United States, the economic data indicates a decline in job openings and new orders for manufactured goods. The Job Openings and Labor Turnover Survey (JOLTS) highlighted a fall in job openings in December to 7.6 million, down from the revised figure of 8.098 million in November. This downward trend suggests a weakening labor market as businesses potentially slow down hiring. Similarly, new orders for manufactured goods also displayed a downturn, decreasing by 0.9% in December following a 0.4% decline in November, which had been revised from an initial report of -0.8%. The consecutive drop in new orders reflects potential cautiousness among manufacturers in response to economic uncertainties and possibly weakening demand.

The recent economic data from the U.S. might negatively affect the GBPUSD currency pair. A decrease in job openings and manufacturing orders suggests a slowing U.S. economy, potentially leading to a dovish stance from the Federal Reserve in terms of monetary policy. Consequently, this may exert downward pressure on the U.S. dollar. Meanwhile, an upcoming high-impact event in the UK, such as the Bank of England Interest Rate Decision, is likely to influence market sentiments towards the British pound. If the Bank of England decides to raise interest rates, it could strengthen the GBP against the USD further, potentially increasing the GBPUSD pair even higher. Therefore, current conditions and upcoming indicators hint at possible upward movement for GBPUSD.

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What can we expect from GBPUSD today?

GBPUSD on Tuesday rose 0.51% to 1.24780. 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 1.25212 with break above could target R2 at 1.25643 or figure level area. While towards the downside, we are looking at daily low of 1.23785 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.24930 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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