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 | 0.13% | 16.3 Pips |  |
||
| Week 2024-08-09 | -0.24% | -31.1 Pips |  |
||
| August | -0.75% | -96.3 Pips |  |
||
Upcoming key events for the new week (London Time)
Tue 07:00 AM Labour Force Survey Employment Change
Tue 07:00 AM ILO Unemployment Rate (3-mth)
Tue 01:30 PM PPI excluding Food and Energy sectors (12-mth)
Wed 07:00 AM CPI Inflation Rate (12-mth)
Wed 01:30 PM CPI Inflation Rate (1-mth)
Wed 01:30 PM CPI Inflation Rate (12-mth)
Thu 07:00 AM GDP (3-mth)
Thu 01:30 PM Initial Unemployment Insurance Claims
Thu 01:30 PM Monthly Retail Trade (1-mth)
Fri 07:00 AM Retail Sales Volumes (1-mth)
What happened over the week
In the week ending 03 August, the United States reported a decrease in Initial Unemployment Insurance Claims to 233,000, a notable drop from the previous figure of 250,000, which had been revised down slightly from 249,000. This decline indicates some improvement in the U.S. labor market as fewer people are filing for unemployment benefits. A lower number of claims generally suggests that fewer layoffs are occurring, an indicator of a strengthening job market. This data was reported by the U.S. Department of Labor.
The GBPUSD currency pair experienced a minor rise of 0.13% on Friday, closing at 1.27568. Despite this, the pair moved lower by -0.24% over the week ending 09 August 2024. The initial improvement in GBPUSD aligns with the positive employment report from the U.S., which normally would have strengthened the USD. However, the weekly decline in the currency pair suggests other factors influenced market sentiment, potentially including investor concerns over the broader macroeconomic situation or monetary policy divergences between the Federal Reserve and the Bank of England.
What can we expect from GBPUSD for the new week and what happened on Friday?
GBPUSD on Friday rose 0.13% to 1.27568. Price is below 9-Day EMA while Stochastic is rising. For the week ending 2024-08-09, the pair dropped -0.24% or -31.1 pips lower.
Looking ahead on Monday, GBPUSD looks bullish as the pair ended higher after 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 1.28016 or at least consolidates above Weekly Pivot level of 1.27415. On the downside, we are looking at week low 1.26662 or 1.26815 (WS1) as immediate support level. GBPUSD need to break on either side to indicate a short-term bias. A close below week low of 1.26662 would indicate selling pressure.
For the month of August, GBPUSD is down by -0.75% or -96.3 pips lower.
Weekly key levels to watch out:
| R3 | 1.29523 |
| R2 | 1.28769 |
| R1 | 1.28169 |
| Weekly Pivot | 1.27415 |
| S1 | 1.26815 |
| S2 | 1.26061 |
| S3 | 1.25461 |
