Gbp rises amid market anticipation of UK economic data releases

GBPUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.74%	97.4 Pips
Week to-date	0.73%	95 Pips
April	2.01%	259.4 Pips

Upcoming key events (London Time)

Tue 07:00 AM GBP Labour Force Survey Employment Change
Tue 07:00 AM GBP ILO Unemployment Rate (3-mth)
Wed 07:00 AM GBP Consumer Prices Index (CPI) (12-mth)
Wed 01:30 PM USD Monthly Retail Trade (1-mth)

What happened lately

In the United Kingdom, the BRC Like-For-Like Retail Sales figures remained constant at 0.9% in March, reflecting no change from the previous month, February. This stability in retail sales suggests that consumer spending behavior has not shifted significantly within this period, which could indicate a steady state in economic consumer activity despite potential inflationary pressures or economic uncertainties. A similar steadiness was recorded for the 12-month average retail sales figure, indicating that over the past year, consumer spending has not experienced significant fluctuations. These persistent figures reflect an ongoing economic environment where consumption patterns are relatively unchanged.

The GBPUSD currency pair saw a notable increase of 0.74% on Monday, reaching a rate of 1.31824. The appreciation of the GBP against the USD could be attributed to several factors, including market speculations around pending economic data releases. Investors and traders may be positioning themselves ahead of significant upcoming U.K. economic announcements, such as the Labour Force Survey Employment Change and the ILO Unemployment Rate, both considered high impact events scheduled for Tuesday. Additionally, the mid-week release of the Consumer Prices Index (CPI) could provide further insights into inflationary trends, influencing monetary policy expectations. These factors, combined with the U.S. Retail Sales data set to be released on Wednesday, could further impact the GBPUSD dynamics. If the U.K. data prove favorable, showing robust employment figures or better-than-expected CPI, the GBP might continue to strengthen against the USD. Conversely, underwhelming results could dampen market sentiment towards the pound, potentially reversing recent gains. Consequently, traders should remain vigilant to these economic events as they can sway currency valuations swiftly.

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What can we expect from GBPUSD today?

GBPUSD on Monday rose 0.74% to 1.31824. Price is above 9-Day EMA while Stochastic is rising.

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

Looking ahead for the day, immediate upside resistance level is R1 at 1.32351 with break above could target R2 at 1.32878 or figure level area. While towards the downside, we are looking at daily low of 1.30615 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.32010 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 0.73% over the past few days.

Key levels to watch out:

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