Gbpusd rises 0.34% amid concerns over us housing market downturn

GBPUSD Analysis

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	0.34%	46.1 Pips
Week to-date	1.73%	232.6 Pips
June	1.69%	226.7 Pips

Upcoming key events (London Time)

Thu 12:00 PM GBP Bank of England Governor Andrew Bailey speech
Thu 01:30 PM USD GDP annual rate
Fri 07:00 AM GBP GDP (3-mth)
Fri 01:30 PM USD PCE Price Index, excluding food and energy (12-mth)

What happened lately

In the United States, the economic indicators show a downturn in the housing market. New-home sales in May 2025 witnessed a significant decline, dropping by 13.7% after having seen an increase of 10.9% in April 2025. This sharp decrease indicates potential concerns about the housing market’s stability and consumer demand. Additionally, the U.S. House Price Index has recorded a further decline in April 2025, slipping to -0.4% from the previous figure of -0.1% in March, according to the FHFA. This continued contraction in the house price index further highlights weakening conditions in the housing sector, signaling that the demand for housing may be faltering amidst other economic uncertainties or shifts in policy.

These economic metrics from the United States could exert downward pressure on the USD, given that housing is a pivotal component of the broader economy. For the GBPUSD currency pair, the U.S. data potentially weaken the value of the USD, possibly leading to a rise in the GBPUSD rate, as evidenced by Wednesday’s modest increase of 0.34% to 1.36564. However, the upcoming economic events, such as the Bank of England Governor’s speech and GDP reports from both the UK and the US, alongside the USD PCE Price Index, will play crucial roles in shaping market sentiment. Should the UK’s GDP data show positive growth and the BoE Governor signal confidence in economic resilience, this could strengthen the GBP further. Conversely, if US data present positive economic strides, it could counterbalance the current USD weakness, adding complexity to the GBPUSD exchange narrative.

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What can we expect from GBPUSD today?

GBPUSD on Wednesday rose 0.34% to 1.36564. Price is above 9-Day EMA while Stochastic is rising.

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

Looking ahead for the day, immediate upside resistance level is R1 at 1.36885 with break above could target R2 at 1.37205 or figure level area. While towards the downside, we are looking at daily low of 1.35902 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.36714 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 1.73% over the past few days.

Key levels to watch out:

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