Gbpusd rises on anticipation of UK employment, US FOMC minutes releases

GBPUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.29%	36.4 Pips
Week to-date	0.27%	34.3 Pips
February	1.6%	198.9 Pips

Upcoming key events (London Time)

Tue 07:00 AM GBP Labour Force Survey Employment Change
Wed 07:00 AM GBP Consumer Prices Index (CPI) (12-mth)
Wed 07:00 PM USD FOMC Meeting Minutes

What happened lately

In the United Kingdom, significant upcoming economic events include the Labour Force Survey Employment Change and the Consumer Prices Index (CPI) for 12 months, both scheduled for release on Wednesday at 07:00 AM. The Labour Force Survey will provide insights into the employment changes in the UK, indicating the health of the labor market. A positive employment change could signal economic growth and stability, potentially influencing monetary policy decisions. CPI figures, on the other hand, are crucial for understanding inflation trends. A higher than expected CPI could lead to increased speculation of tighter monetary policy by the Bank of England to curb inflation, driving the British pound stronger.

In the United States, a key upcoming event is the release of the Federal Open Market Committee (FOMC) Meeting Minutes on Wednesday at 07:00 PM. These minutes provide an in-depth perspective on the Federal Reserve’s view of the economy and offer clues about future monetary policy shifts. Market participants will scrutinize the minutes for any signs of changes in interest rate paths, which have direct implications on economic activities and the currency’s strength. Any indication of a hawkish stance by the Fed could bolster the US dollar as investors anticipate higher interest rates.

The recent rise of GBPUSD by 0.29% to 1.26237 on Monday could be attributed to anticipations ahead of these critical releases from both the UK and the US. Factors such as stronger employment data or higher inflation numbers in the UK could further boost the pound, enhancing the GBPUSD pair. Conversely, hawkish revelations from the FOMC minutes might increase demand for the US dollar, potentially exerting downward pressure on GBPUSD. Traders will closely monitor these releases, as they are likely to prompt significant volatility in the currency markets.

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What can we expect from GBPUSD today?

GBPUSD on Monday rose 0.29% to 1.26237. Price is above 9-Day EMA while Stochastic is rising.

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

Looking ahead for the day, immediate upside resistance level is R1 at 1.26891 with break above could target R2 at 1.27544 or figure level area. While towards the downside, we are looking at daily low of 1.25802 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.27000 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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