GBPUSD on Friday dropped -0.86% to 1.26330. Week ending 2024-02-02 moved lower by -0.55%. What you need to know.

GBPUSD Analysis

Performance
PeriodPctChgMomentum
Friday-0.86%-109.5 Pips
Week 2024-02-02-0.55%-69.5 Pips
February-0.42%-53.3 Pips

Upcoming key events for the new week (London Time)

Mon 12:00 AM Federal Reserve Chair Jerome Powell speech
Thu 01:30 PM Initial Unemployment Insurance Claims

What happened over the week

🇺🇸 U.S. Michigan Index of Consumer Sentiment in January rose to 79 points compared to previous figure 78.8 points in December Source: University of Michigan
🇺🇸 U.S. Factory Orders (1-mth) in December dropped to 0.2% compared to previous figure 2.6% in November Source: Census Bureau
🇺🇸 U.S. Nonfarm Payroll Employment in January rose to 353K compared to previous figure 333K (revised upward from 216K) in December Source: Bureau of Labor Statistics
🇺🇸 In the week ending 27 January, U.S. Initial Unemployment Insurance Claims rose to 224K compared to previous figure 215K (revised from 214K) Source: Department of Labor
🇺🇸 U.S. Fed Interest Rate Decision (Federal Funds Rate) unchanged at 5.5% compared to previous rate 5.5% Source: Federal Reserve
🇺🇸 U.S. Employment Cost Index (ECI) in Q4 below forecast and dropped to 0.9% compared to previous figure 1.1% in Q3 Source: Bureau of Labor Statistics
🇺🇸 U.S. Job Openings and Labor Turnover Survey (JOLTS) in December exceed forecast and rose to 9.026M compared to previous figure 8.925, revised from 8.79M in November Source: Bureau of Labor Statistics
🇺🇸 U.S. Housing Price Index (1-mth) in November unchanged at 0.3% compared to previous report in October.

From X (Twitter)


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

GBPUSD on Friday dropped -0.86% to 1.26330. Price is below 9-Day EMA while Stochastic is falling. For the week ending 2024-02-02, the pair dropped -0.55% or -69.5 pips lower.

Looking ahead on Monday, GBPUSD looks mixed as the pair is likely to consolidate above week low of 1.26136.

For the new week, our technical outlook looks bearish, immediate support level is at 1.25737 (WS1) with break below could see further selling pressure towards 1.25144 (WS2). For potential buyers, as the current momentum is bearish, we prefer to look at firm break of the week high of 1.27721 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 1.26136 would indicate selling pressure.

For the month of February, GBPUSD is down by -0.42% or -53.3 pips lower.

Weekly key levels to watch out:

R31.28907
R21.28314
R11.27322
Weekly Pivot1.26729
S11.25737
S21.25144
S31.24152

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