Gbp to usd drops as march ends with 2.96% gain

GBPUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	-0.21%	-27.4 Pips
Week to-date	0.06%	8 Pips
March	2.96%	371.6 Pips

Upcoming key events (London Time)

No major events for the day.

What happened lately

The United States Chicago Purchasing Managers’ Index (PMI) showed a rise in March, reaching 47.6 points compared to 45.5 points in February. This suggests an improvement in business conditions in the Chicago area, reflecting a resurgence in manufacturing activity. While the index remains below the neutral 50-point mark, indicating contraction, the upward movement is a positive sign, pointing toward a recovery from previous lows. The increase in the PMI can have potential implications on economic expectations and confidence in future growth.

In the context of the GBPUSD currency pair, the rise in Chicago PMI reflects a mild strengthening of the U.S. economy, which could contribute to support for the U.S. dollar. However, on Monday, GBPUSD declined by 0.21% to 1.29193, although it ended March with a notable increase of 2.96%, or 371.6 pips higher. This upward trend indicates strong demand for the British pound relative to the U.S. dollar during the month. With no major economic events scheduled for the day, currency movements may largely depend on market sentiment and technical factors. The slight decline in GBPUSD might reflect a temporary correction after a strong performance in March, as traders potentially take profits or adjust positions. Nonetheless, the overall positive March trend suggests that traders have a favorable outlook on the pound, likely influenced by economic data or expectations related to the UK economy. Without major market-moving events, any changes in GBPUSD may be short-lived, and ongoing economic data releases will continue to influence the pair in the coming sessions.

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What can we expect from GBPUSD today?

GBPUSD on Monday dropped -0.21% to 1.29193. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for GBPUSD looks bearish as the pair posted lower in Monday trading session.

Looking ahead for the day, immediate support level is at S1 1.28793 with break below could see further selling pressure towards S2 at 1.28394. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.29726 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 1.28860 would indicate selling pressure.

For the week to-date, take note that GBPUSD is mixed as compared to the prior week.

GBPUSD ended month of March trading session up by 2.96% or 371.6 pips higher.

Key levels to watch out:

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