Dear ,
As requested, let’s look at GBPUSD and the recent events that happened in the previous trading session.
GBPUSD Analysis
| Performance | |||||
| Period | Pct | Chg | Momentum | ||
| Friday | -0.37% | -49.3 Pips |  |
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| Week 2024-09-06 | -0.65% | -85.7 Pips |  |
||
| September | -0.3% | -39.2 Pips | |
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Upcoming key events for the new week (London Time)
Tue 07:00 AM Labour Force Survey Employment Change
Wed 02:00 AM Second 2024 United States presidential debate
Wed 01:30 PM CPI Inflation Rate (12-mth)
Thu 01:30 PM Initial Unemployment Insurance Claims
Thu 01:30 PM PPI excluding Food and Energy sectors (12-mth)
Fri 03:00 PM The Index of Consumer Sentiment
What happened over the week
The U.S. economy demonstrated robust performance with notable gains in several key indicators. Nonfarm payroll employment in the United States for August surged to 142,000 from a revised July figure of 89,000, according to the Bureau of Labor Statistics. Revised downwards, the previous July figure stood at 114,000. In parallel, nonfarm business labor productivity in Q2 improved to 2.5%, a slight increase from the 2.3% recorded in Q1, as reported by the Bureau of Labor Statistics. The Department of Labor released data showing initial unemployment insurance claims during the week ending on August 31 dropped to 227,000 from 231,000. U.S. factory orders in July rebounded sharply, increasing by 5% from a contraction of 3.3% in June, based on data from the Census Bureau. However, the Job Openings and Labor Turnover Survey (JOLTS) for July revealed a decrease in job openings to 7.673 million from a revised June figure of 7.91 million (initially reported as 8.184 million), per the Bureau of Labor Statistics.
Over the week ending September 6, the GBP/USD pair experienced a decline, closing the week at 1.31270, down by 0.37% on Friday and 0.65% over the week. The upbeat U.S. economic indicators likely exerted downward pressure on GBP/USD, as stronger U.S. data typically supports the U.S. dollar by increasing the likelihood of tighter monetary policy from the Federal Reserve. The market will look ahead to significant upcoming events, including the UK Labour Force Survey Employment Change and several high-impact U.S. events such as the second U.S. presidential debate, CPI inflation rate, PPI excluding food and energy sectors, and the Index of Consumer Sentiment. These events may further influence GBP/USD’s movement, where positive U.S. economic news and potential political stability signals could support further USD strength against GBP. Conversely, strong UK labor data might provide some support for the pound, adding complexity to the currency pair’s outlook.
What can we expect from GBPUSD for the new week and what happened on Friday?
GBPUSD on Friday dropped -0.37% to 1.31270. Price is below 9-Day EMA while Stochastic is rising. For the week ending 2024-09-06, the pair dropped -0.65% or -85.7 pips lower.
Looking ahead on Monday, GBPUSD looks bearish as the pair posted lower in Friday trading session.
For the new week, our technical outlook is mixed. To see upside interest, we prefer to look at price breakout of week high of 1.32626 or at least consolidates above Weekly Pivot level of 1.31640. On the downside, we are looking at week low 1.31024 or 1.30654 (WS1) as immediate support level. GBPUSD need to break on either side to indicate a short-term bias. A close below week low of 1.31024 would indicate selling pressure.
For the month of September, GBPUSD is down by -0.3% or -39.2 pips lower.
Weekly key levels to watch out:
| R3 | 1.33858 |
| R2 | 1.33242 |
| R1 | 1.32256 |
| Weekly Pivot | 1.31640 |
| S1 | 1.30654 |
| S2 | 1.30038 |
| S3 | 1.29052 |
