Gbpusd holds steady as market awaits key economic events in us and uk

GBPUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	0%	-0.4 Pips
Week to-date	0.55%	70.5 Pips
March	3.18%	400.9 Pips

Upcoming key events (London Time)

Wed 06:00 PM USD Fed Interest Rate Decision (Federal Funds Rate)
Wed 06:00 PM USD FOMC Economic Projections
Wed 06:00 PM USD Interest Rate Projections
Thu 07:00 AM GBP Labour Force Survey Employment Change
Thu 11:00 AM GBP Bank of England Interest Rate Decision (Bank Rate)

What happened lately

In the United States, the upcoming economic events scheduled for this week are of high importance and could significantly affect market movements. On Wednesday, the Federal Reserve is expected to announce its decision on the Federal Funds Rate, which is critical as it influences the interest rates across the economy. The Fed will also release its FOMC Economic Projections, providing insights into the central bank’s forecasts and economic outlook. The Interest Rate Projections will accompany these releases, offering a glimpse into the possible future trajectory of interest rates. All these events have the potential to create volatility in the USD as they will shape expectations about the future economic policy of the United States.

In the United Kingdom, there are critical economic events as well. On Thursday, the Labour Force Survey is set to release employment change figures which will provide insights into the country’s employment status and economic health. Later that day, the Bank of England will make its Interest Rate Decision announcement. This decision is crucial for the GBP as it affects borrowing costs and inflation expectations in the UK. Both events are of high importance and can influence the movement of the British Pound, depending on the outcomes and the central bank’s outlook on future economic conditions.

The GBPUSD pair remained unchanged on Tuesday, holding steady at 1.29860. The pair presently seems to be in consolidation mode, indicating a period of relative stability before potential market-moving events. The upcoming high-impact economic events from both the US and UK could significantly change the pair’s dynamics. If the Fed’s interest rate decision and projections suggest a more hawkish stance, the USD could strengthen, putting pressure on the GBPUSD. Conversely, if the Bank of England signals a more hawkish approach than expected, it might boost the GBP, potentially driving the pair higher. Traders are likely to be cautious leading up to these events, awaiting outcomes that might provide clearer direction for the pair.

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What can we expect from GBPUSD today?

GBPUSD on Tuesday dropped 0% to 1.29860. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for GBPUSD looks mixed as the pair is likely to consolidate above 1.29827 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.29900 or trades above daily pivot 1.29864. Break above could target R1 at 1.29896. While to the downside, we are looking at 1.29827 (S1) and daily low of 1.29831 as support levels. GBPUSD need to break on either side to indicate a short-term bias. A close below 1.29831 would indicate selling pressure.

For the week to-date, take note that GBPUSD is bullish as the pair continued to trade higher and is up by 0.55% over the past few days.

Key levels to watch out:

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