Gbpusd inches higher amid mixed economic signals

GBPUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	0.07%	9.4 Pips
Week to-date	-0.09%	-11.8 Pips
April	-0.01%	-1 Pips

Upcoming key events (London Time)

Wed 08:00 PM USD US Liberation Day Tariff Announcements

What happened lately

In the United States, the Job Openings and Labor Turnover Survey (JOLTS) for February showed a decrease in the number of job openings to 7.568 million, marking a decline from the revised January figure of 7.74 million, as reported by the Bureau of Labor Statistics. This reduction suggests slight easing in the job market, although the number of openings remains high relative to historical standards. Such data could indicate tightening in hiring trends as businesses adjust to economic fluctuations, potentially leading to ramifications in household spending and wage growth. Concurrently, the U.S. Chicago Purchasing Managers’ Index, a key economic indicator, rose to 47.6 points in March from 45.5 points in February. Despite remaining below the 50-point threshold, which separates expansion from contraction, the improvement suggests a slightly optimistic business sentiment and potential stabilization in manufacturing activities.

The recent economic data may have a mixed impact on the GBPUSD forex pair. The contraction in U.S. job openings could indicate a cooling labor market, which might weigh on the U.S. dollar as it could temper expectations for aggressive monetary policy tightening by the Federal Reserve. However, the uptick in the Chicago PMI suggests underlying resilience in the U.S. economy, providing some support to the dollar. The current consolidation of the GBPUSD pair, with a slight increase to 1.29250, reflects market participants’ cautious stance while digesting these mixed signals. Additionally, the upcoming high-impact event — USD US Liberation Day Tariff Announcements — could introduce further volatility depending on the nature and extent of tariff changes, potentially influencing GBPUSD trading as traders seek to position themselves ahead of any significant policy shifts.

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What can we expect from GBPUSD today?

GBPUSD on Tuesday rose 0.07% to 1.29250. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for GBPUSD looks mixed as the pair is likely to consolidate above 1.29153 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.29260 or trades above daily pivot 1.29207. Break above could target R1 at 1.29303. While to the downside, we are looking at 1.29153 (S1) and daily low of 1.29110 as support levels. GBPUSD need to break on either side to indicate a short-term bias. A break above 1.29260 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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