Gbp/usd drops as US job openings decline and house price growth slows

GBPUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	-0.22%	-30.1 Pips
Week to-date	0.7%	93 Pips
April	3.81%	492.4 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 Job Openings and Labor Turnover Survey (JOLTS) indicated a decline in job openings to 7.192 million in March, down from a revised figure of 7.568 million in February. This decrease suggests a cooling in the labor market, as fewer job openings could imply a reduction in the demand for workers. Additionally, the U.S. House Price Index for February showed a slight decline, now at 0.1% from a revised 0.2% in January, continuing a gradual slow down from the previous figure of 0.3%. This slowdown in house price growth may indicate a maturing housing market and could reflect concerns about affordability or economic uncertainty, impacting consumer confidence in housing investments.

Regarding the GBPUSD currency pair, which dropped by 0.22% to 1.34043, the recent U.S. economic data could have mixed effects. The reduction in U.S. job openings and the slowdown in house price growth point to a potential cooling of the U.S. economy. This may lead to speculation that the Federal Reserve will maintain accommodative monetary policies for longer, which could weaken the U.S. dollar against the British pound. However, upcoming high-impact data releases, such as the U.S. PCE Price Index and GDP annual rate, could offset these effects. If these indicators show strong economic performance, they might boost confidence in the U.S. economy, strengthening the U.S. dollar and putting further pressure on the GBPUSD pairing. Therefore, market participants will likely remain cautious and attentive to these upcoming reports to gauge future movements in the currency market.

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What can we expect from GBPUSD today?

GBPUSD on Tuesday dropped -0.22% to 1.34043. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for GBPUSD looks mixed as the pair is likely to consolidate above 1.3375 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.34436 or trades above daily pivot 1.34093. Break above could target R1 at 1.34386. While to the downside, we are looking at 1.3375 (S1) and daily low of 1.33800 as support levels. GBPUSD need to break on either side to indicate a short-term bias. A close below 1.33800 would indicate selling pressure.

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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