GBPUSD on Friday rose 0.2% to 1.23436. Week ending 2023-05-26 moved lower by -0.81%. What you need to know.
GBPUSD Analysis
| Performance | |||||
| Period | Pct | Chg | Momentum | ||
| Friday | 0.2% | 24.6 Pips |  | ||
| Week 2023-05-26 | -0.81% | -100.4 Pips |  | ||
| May | -1.73% | -217.6 Pips | | ||
Upcoming key events for the new week (London Time)
Mon 06:00 AM USD Memorial Day 
Thu 01:15 PM USD ADP Non-Farm Employment Change 
Thu 01:30 PM USD Initial Unemployment Insurance Claims Fri 01:30 PM USD Nonfarm Payroll Employment
What happened over the week
🇺🇸 UoM 5-year Consumer Inflation Expectation in May exceed forecast and dropped to 3.1% compared to previous figure 3.2% in April Source: University of Michigan 🇺🇸 Michigan Index of Consumer Sentiment in May exceed forecast and rose to 59.2 points compared to previous figure 57.7 points in April Source: University of Michigan 🇺🇸 Core Personal Consumption Expenditures – Price Index (12-mth) in April exceed forecast and rose to 4.7% compared to previous figure 4.6% in March Source: Bureau of Economic Analysis USD Durable Goods Orders excluding Transportation in April dropped to -0.2% compared to previous figure 0.3% (revised from 0.3%). Source: Census Bureau
🇬🇧 Retail Sales Volumes excluding Fuel (12-mth) in April below forecast and improved to -2.6% compared to previous figure -4, revised from -3.2% in March Source: Office for National Statistics 🇺🇸 GDP Annualized in Q1 preliminary estimate exceed forecast and rose to 1.3% compared to previous figure 1.1% in Q4 Source: Bureau of Economic Analysis 🇺🇸 In the week ending 20 May, the Initial Unemployment Insurance Claims rose to 229K compared to previous figure 225K (revised from 242K) Source: Department of Labor 🇺🇸 Chicago Fed National Activity Index in April exceed forecast and rose to 0.07 points compared to previous figure -0.37, revised from -0.19 points in March GBP PPI Core Output (12-mth) n.seasonal adjustment in April dropped to 6% compared to previous figure 8.3% (revised from 8.5%). Source: Office for National Statistics 🇬🇧 PPI Core Output (1-mth) n.seasonal adjustment in April below forecast and dropped to 0% compared to previous figure 0.3% in March Source: Office for National Statistics 🇬🇧 CPI Inflation Rate (12-mth) in April exceed forecast and dropped to 8.7% compared to previous figure 10.1% in March Source: Office for National Statistics 🇬🇧 CPI Inflation Rate (1-mth) in April exceed forecast and rose to 1.2% compared to previous figure 0.8% in March Source: Office for National Statistics 🇬🇧 Core CPI Inflation Rate (12-mth) in April exceed forecast and rose to 6.8% compared to previous figure 6.2% in March Source: Office for National Statistics 🇺🇸 New Residential Sales (1-mth) in April exceed forecast and rose to 0.683M compared to previous figure 0.656, revised from 0.683M in March Source: Census Bureau
What can we expect from GBPUSD for the new week and what happened on Friday?
GBPUSD on Friday rose 0.2% to 1.23436. Price is below 9-Day EMA while Stochastic is falling in oversold zone. For the week ending 2023-05-26, the pair dropped -0.81% or -100.4 pips lower.
Looking ahead on Monday, GBPUSD looks mixed as the pair is likely to consolidate above week low of 1.23076.
For the new week, our technical outlook looks bearish, immediate support level is at 1.22767 (WS1) with break below could see further selling pressure towards 1.22099 (WS2). For potential buyers, as the current momentum is bearish, we prefer to look at firm break of the week high of 1.24722 as an important indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below week low of 1.23076 would indicate selling pressure.
For the month of May, GBPUSD is down by -1.73% or -217.6 pips lower.
Weekly key levels to watch out:
| R3 | 1.26059 |
| R2 | 1.25391 |
| R1 | 1.24413 |
| Weekly Pivot | 1.23745 |
| S1 | 1.22767 |
| S2 | 1.22099 |
| S3 | 1.21121 |
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