GBPUSD on Thursday dropped -0.95% to 1.27346. 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 Thursday
Period	Pct	Chg	Momentum
Thursday	-0.95%	-122.2 Pips
Week to-date	-1.04%	-133.8 Pips
August	-0.94%	-121.4 Pips

Upcoming key events (London Time)

  Fri 01:30 PM USD Nonfarm Payroll Employment
  Fri 01:30 PM USD Average Hourly Earnings (1-mth)
  Fri 01:30 PM USD Average Hourly Earnings (12-mth)

What happened lately

 🇺🇸 The Q2 flash estimate for U.S. unit labor costs dropped to 0.9%, down from 4% in Q1. Source: Bureau of Labor Statistics
 🇺🇸 U.S. Nonfarm Business Labor Productivity in Q2 flash estimate rose to 2.3%, compared to the previous figure of 0.2% in Q1. Source: Bureau of Labor Statistics
 🇺🇸 In the week ending 27 July, U.S. Initial Unemployment Insurance Claims rose to 249K compared to previous figure 235K Source: Department of Labor
 🇬🇧 U.K. Bank of England Interest Rate Decision (Bank Rate) dropped to 5% compared to previous rate 5.25% Source: Bank of England
 🇺🇸 U.S. Fed Interest Rate Decision (Federal Funds Rate) unchanged at 5.5% compared to previous rate 5.5% Source: Federal Reserve
 🇺🇸 U.S. Pending Home Sales (1-mth) in June rose to 4.8%, compared to the revised May figure of -1.9%, up from the initial -2.1%.
 U.S. Pending Home Sales (1-mth) in June increased to 4.8%, up from the revised May figure of -1.9%, which was initially reported as -2.1%.
 🇺🇸 In July, the U.S. Chicago Purchasing Managers’ Index fell to 45.3 points from 47.4 points in June.
 🇺🇸 The U.S. Employment Cost Index (ECI) in Q2 decreased to 0.9% from the previous figure of 1.2% in Q1. Source: Bureau of Labor Statistics

What can we expect from GBPUSD today?

GBPUSD on Thursday dropped -0.95% to 1.27346. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for GBPUSD looks bearish as the pair posted lower in Thursday trading session.

Looking ahead for the day, immediate support level is at S1 1.26873 with break below could see further selling pressure towards S2 at 1.26401. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.28604 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 1.27266 would indicate selling pressure.

For the week to-date, take note that GBPUSD is bearish as the pair posted lower by -1.04%.

Key levels to watch out: