Gbpusd rises 0.3% ahead of significant US economic events

GBPUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	0.3%	38.1 Pips
Week to-date	-1%	-129.2 Pips
April	-1.07%	-138.7 Pips

Upcoming key events (London Time)

Wed 07:00 PM USD FOMC Meeting Minutes
Thu 01:30 PM USD CPI Inflation Rate (12-mth)

What happened lately

The GBPUSD currency pair saw an uptick on Tuesday, rising by 0.3% and reaching 1.27815. This increment suggests a slight strengthening of the British Pound against the US Dollar. Moving forward, there are significant upcoming economic events in the United States that could impact this currency pair. On Wednesday at 7:00 PM, the Federal Open Market Committee (FOMC) Meeting Minutes will be released. As these minutes provide insights into the US Federal Reserve’s stance on monetary policy, any hints towards future interest rate hikes or economic outlook adjustments could result in increased volatility for the USD.

Additionally, on Thursday at 1:30 PM, the US Consumer Price Index (CPI) Inflation Rate for a 12-month period will be published. As an important indicator of inflation, the CPI data will be closely watched by market participants. A higher-than-expected inflation figure could lead the Federal Reserve to consider more aggressive interest rate hikes to curb inflationary pressures, which might strengthen the US Dollar. Conversely, a lower-than-expected inflation rate could weigh on the USD, potentially giving the British Pound an edge on the GBPUSD exchange rate.

The 0.3% rise in the GBPUSD on Tuesday amidst a lack of major UK economic news suggests that external factors, particularly in the US, might be driving the pair. Given the significant US economic events on the horizon, these releases could be a catalyst for movement in the GBPUSD. Market participants should be attentive to potential changes in monetary policy and inflation trends in the US, which could either reinforce the current upward movement of GBPUSD or lead to a different trajectory. As always, traders should remain vigilant and adjust their strategies in response to these new economic data releases.

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What can we expect from GBPUSD today?

GBPUSD on Tuesday rose 0.3% to 1.27815. Price is below 9-Day EMA while Stochastic is falling.

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

Looking ahead for the day, immediate upside resistance level is R1 at 1.28287 with break above could target R2 at 1.28758 or figure level area. While towards the downside, we are looking at daily low of 1.27000 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.28115 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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