GBPUSD on Friday rose 0.3% to 1.27360. Week ending 2024-05-24 rose 0.28%. What’s going on.

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	0.3%	37.8 Pips
Week 2024-05-24	0.28%	36 Pips
May	1.94%	242.2 Pips

Upcoming key events for the new week (London Time)

  Mon 06:00 AM Memorial Day
  Thu 01:30 PM Initial Unemployment Insurance Claims
  Thu 01:30 PM GDP Annualized
  Fri 01:30 PM Personal Consumption Expenditures Price Index (1-mth)
  Fri 01:30 PM Personal Consumption Expenditures Price Index (12-mth)

What happened over the week

🇺🇸 U.S. UoM 5-year Consumer Inflation Expectation in May dropped to 3% compared to previous figure 3.1% in April Source: University of Michigan
🇺🇸 U.S. Michigan Index of Consumer Sentiment in May rose to 69.1 points compared to previous figure 67.4 points in April Source: University of Michigan
🇺🇸 U.S. Durable Goods Orders in April rose to 2.6% compared to previous figure 0.8% (revised from 2.6%) Source: Census Bureau
🇬🇧 U.K. Retail Sales Volumes (1-mth) in April dropped to -2.3% compared to previous figure -0.2, revised from 0% in March Source: Office for National Statistics
🇬🇧 U.K. GfK Consumer Confidence in May improved to -17 points compared to previous figure -19 points in April Source: GfK
🇺🇸 U.S. New-Home Sales Change (1-mth) in April dropped to -4.7% compared to previous figure 5.4, revised from 8.8% in March
🇺🇸 In the week ending 18 May, U.S. Initial Unemployment Insurance Claims dropped to 215K compared to previous figure 223K (revised from 222K) Source: Department of Labor
🇬🇧 U.K. Retail Price Index (12-mth) in April dropped to 3.3% compared to previous figure 4.3% in March Source: Office for National Statistics
🇬🇧 U.K. CPI Inflation Rate (CPIH) (1-mth) in April dropped to 0.3% compared to previous figure 0.6% in March Source: Office for National Statistics
🇬🇧 U.K. Producer Price Index – Output (12-mth) n.seasonal adjustment in April rose to 1.1% compared to previous figure 0.7, revised from 0.6% in March

What can we expect from GBPUSD for the new week and what happened on Friday?

GBPUSD on Friday rose 0.3% to 1.27360. Price is above 9-Day EMA while Stochastic is falling. For the week ending 2024-05-24, the pair rose 0.28% or 36 pips higher.

Looking ahead on Monday, GBPUSD looks mixed as the pair is likely to consolidate above week low of 1.26753.

As for the new week, our technical outlook looks bullish, immediate upside resistance level at 1.27732 (WR1) with break above could target 1.28103 (WR2). On the downside, we are looking at week low of 1.26753 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.27614 would suggest bullish bias after recent positive movement.

For the month of May, GBPUSD is up by 1.94% or 242.2 pips higher.

Weekly key levels to watch out: