GBPUSD on Monday rose 0.49% to 1.32049. What we know.

Dear ,

As requested, let’s look at GBPUSD and the recent events that happened in the previous trading session.

GBPUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.49%	63.8 Pips
Week to-date	0.5%	65.7 Pips
September	0.29%	38.8 Pips

Upcoming key events (London Time)

  Tue 01:30 PM USD Monthly Retail Trade (1-mth)
  Wed 07:00 AM GBP Consumer Prices Index (CPI) (1-mth)
  Wed 07:00 AM GBP Consumer Prices Index (CPI) (12-mth)
  Wed 07:00 PM USD Fed Interest Rate Decision (Federal Funds Rate)
  Wed 07:00 PM USD Interest Rate Projections

What happened lately

The New York Fed recently reported a significant improvement in the U.S. New York Empire State Manufacturing Index for September, which rose to 11.5 points, compared to -4.7 points in August. This sharp increase indicates a substantial improvement in manufacturing activity, suggesting robust economic conditions within the state of New York. These findings serve as a positive indicator for the broader U.S. economy as manufacturing is a key component of economic health.

The GBPUSD pair experienced a notable rise of 0.49% to 1.32049 on Monday. This increase can be attributed to market anticipations and reactions to both recent data releases and upcoming economic events. Looking forward, two significant high-impact announcements from the United States will be closely monitored: the Monthly Retail Trade data set for Tuesday at 1:30 PM and the Fed’s interest rate decision and projections slated for Wednesday at 7:00 PM. These events have the potential to introduce volatility, as retail trade numbers will offer insights into consumer spending, while the Fed’s interest rate decision will provide guidance on monetary policy.

Simultaneously, the United Kingdom will release crucial economic indicators on Wednesday at 7:00 AM, including the Consumer Prices Index (CPI) for both the 1-month and 12-month periods. These high-impact data points will shed light on inflationary pressures within the UK economy and could play a pivotal role in guiding the Bank of England’s future monetary policy decisions.

The recent rise in the GBPUSD exchange rate could be influenced by the forthcoming economic releases from both the U.S. and the UK. If the U.S. retail trade data and the Fed’s policy announcements suggest a slowing economy or a dovish stance, this could weaken the U.S. dollar, providing further support for the GBPUSD pair. Conversely, strong UK CPI figures might reinforce expectations of tighter monetary policy from the Bank of England, thus bolstering the British pound. Investors are expected to stay cautious and react accordingly to these high-impact events, which will likely drive the short-term movements in the GBPUSD exchange rate.

What can we expect from GBPUSD today?

GBPUSD on Monday rose 0.49% to 1.32049. Price is above 9-Day EMA while Stochastic is rising.

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

Looking ahead for the day, immediate upside resistance level is R1 at 1.32373 with break above could target R2 at 1.32696 or figure level area. While towards the downside, we are looking at daily low of 1.31340 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.32180 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 0.5% over the past few days.

Key levels to watch out: