Gbpusd rises slightly amid mixed economic indicators

GBPUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	0.05%	5.8 Pips
Week to-date	-0.29%	-37.4 Pips
March	2.45%	307.6 Pips

Upcoming key events (London Time)

Wed 12:30 PM USD CPI Inflation Rate (12-mth)
Thu 12:30 PM USD PPI excluding Food and Energy sectors (12-mth)

What happened lately

In the United States, the latest Job Openings and Labor Turnover Survey (JOLTS) for January indicated a notable increase in job openings, which rose to 7.74 million from the revised December figure of 7.508 million according to the Bureau of Labor Statistics. This rise suggests a strengthening labor market as companies are opening more positions, reinforcing the notion of robust economic activity. An increase in job openings typically signals employer confidence in economic conditions and could potentially lead to lower unemployment rates if these positions are filled.

Meanwhile, in the United Kingdom, retail sales reflected a concerning trend as the BRC Like-For-Like Retail Sales experienced a decline over a 12-month period, falling to 0.9% in February from the previous 2.5% recorded in January. This decrease indicates a slowdown in consumer spending, which can be an early warning of weaker economic growth. It highlights potential caution among consumers possibly due to economic uncertainty or inflationary pressures, which may impact overall retail performance if sustained.

The GBPUSD currency pair saw a slight increase of 0.05% to 1.28830 on Tuesday, even amidst the outlined economic releases. The U.S. labor market’s strength likely provided some support to the U.S. dollar; however, the broader outlook for sterling remains uncertain given the weakening retail sales data from the U.K. Upcoming economic events in the U.S., such as the CPI Inflation Rate and PPI excluding Food and Energy sectors, could further influence the pair. If inflation rates rise significantly, it could strengthen the dollar due to potential monetary policy adjustments by the Federal Reserve, which may exert downward pressure on GBPUSD. Conversely, if inflation remains subdued, it could limit dollar gains, allowing the pound to stabilize or strengthen slightly if market sentiment shifts in its favor.

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What can we expect from GBPUSD today?

GBPUSD on Tuesday rose 0.05% to 1.28830. Price is above 9-Day EMA while Stochastic is falling in overbought zone.

Updated daily direction for GBPUSD looks mixed as the pair is likely to consolidate above 1.28746 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.28858 or trades above daily pivot 1.28802. Break above could target R1 at 1.28886. While to the downside, we are looking at 1.28746 (S1) and daily low of 1.28718 as support levels. GBPUSD need to break on either side to indicate a short-term bias. A break above 1.28858 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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