Gbpusd rises by 0.9% due to market anticipation and US economic data outlook

GBPUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.9%	120.4 Pips
Week to-date	0.91%	121 Pips
April	4.02%	519.4 Pips

Upcoming key events (London Time)

Wed 01:30 PM USD PCE Price Index, excluding food and energy (12-mth)
Wed 01:30 PM USD GDP annual rate

What happened lately

In the United States, the upcoming release of the PCE Price Index, excluding food and energy, is scheduled for Wednesday at 01:30 PM. This data is crucial as it measures the changes in the price of goods and services purchased by consumers, excluding volatile components like food and energy. A high reading could indicate inflationary pressures in the economy. Also, at the same time, the GDP annual rate will be released. This figure represents the total dollar value of all goods and services produced over a specific time period and is a comprehensive indicator of the country’s economic health. A higher GDP rate suggests economic growth, which could impact monetary policy decisions by the Federal Reserve. Both of these data releases have a high impact on financial markets, as they provide insights into the future direction of the economy and potential interest rate adjustments.

The GBPUSD pair saw a rise of 0.9% on Monday, reaching a level of 1.34344. This movement could be attributed to several factors including market anticipations, changes in risk sentiment, or geopolitical developments affecting currency dynamics. The increase in GBPUSD suggests that the British pound has gained strength against the US dollar. Positive economic signals from the UK or relatively dovish tones from the US regarding future monetary policy could play roles in such currency appreciation. Conversely, any anticipation of weaker-than-expected US economic data may have contributed to dollar weakening, thereby boosting the GBPUSD pair.

Looking forward, the upcoming US economic data releases on Wednesday could significantly influence GBPUSD. If the PCE Price Index and GDP annual rate exceed expectations, this can bolster the US dollar, as it may lead to expectations of a hawkish stance from the Federal Reserve. An increase in interest rates typically strengthens the currency by attracting foreign investment and increasing demand for US dollars. Conversely, if these figures fail to meet expectations, it may undermine confidence in the US dollar, potentially benefiting the GBPUSD pair further by propelling it to new highs. The extent of the impact, however, will depend on how market participants interpret these data in the context of broader economic and geopolitical developments.

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What can we expect from GBPUSD today?

GBPUSD on Monday rose 0.9% to 1.34344. 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 1.34925 with break above could target R2 at 1.35506 or figure level area. While towards the downside, we are looking at daily low of 1.32797 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.34442 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 0.91% over the past few days.

Key levels to watch out:

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