Gbp rises against usd despite mixed us economic signals

GBPUSD Analysis

Performance after Thursday
Period	Pct	Chg	Momentum
Thursday	0.48%	62.3 Pips
Week to-date	1.19%	154.3 Pips
April	1.33%	171.7 Pips

Upcoming key events (London Time)

Fri 01:30 PM USD Nonfarm Payroll Employment
Fri 01:30 PM USD Average Hourly Earnings (12-mth)
Fri 04:25 PM USD Federal Reserve Chair Jerome Powell speech

What happened lately

In the United States, the Department of Labor reported a slight decline in Initial Unemployment Insurance Claims for the week ending March 29, dropping to 219K from a previous 225K (revised from 224K). This indicates a modest improvement in the labor market, reflecting a steady job retention rate as fewer individuals claimed unemployment benefits. However, the news on manufacturing was less optimistic. According to the Census Bureau, new orders for manufactured goods saw a significant decrease in February, falling to 0.6% from a revised January figure of 1.7%. This decline suggests a slowdown in manufacturing activity, possibly influenced by economic uncertainties or supply chain disruptions.

With respect to GBPUSD, recent developments in the U.S. economy may lead to mixed expectations. Although a decreasing unemployment claims number suggests a robust labor market which could strengthen the USD, the downturn in manufacturing orders reflects potential economic slowdown fears. This combination may lead traders to exhibit caution regarding U.S. economic health, leading to fluctuations in the currency market. Nonetheless, the GBPUSD pair rose by 0.48% to 1.30926, indicating a stronger British pound against the dollar. Moreover, upcoming U.S. economic data releases, including the Nonfarm Payroll Employment, Average Hourly Earnings, and a speech by Federal Reserve Chair Jerome Powell, could introduce volatility and influence trader sentiment. These factors collectively suggest that the GBPUSD exchange rate could continue to see varied movement based on economic indicators and market predictions.

Latest from X (Twitter)

Tweets by Office for National Statistics

What can we expect from GBPUSD today?

GBPUSD on Thursday rose 0.48% to 1.30926. Price is above 9-Day EMA while Stochastic is rising.

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

Looking ahead for the day, immediate upside resistance level is R1 at 1.32043 with break above could target R2 at 1.33161 or figure level area. While towards the downside, we are looking at daily low of 1.30000 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.32139 may suggest continuation after recent positive movement.

For the week to-date, take note that GBPUSD is bullish as the pair continued to trade higher and is up by 1.19% over the past few days.

Key levels to watch out:

#GBPUSD Trending on Twitter

[custom-twitter-feeds hashtag=”#GBPUSD” num=3 showheader=false]