GBPUSD rises 0.53% ahead of key economic events and speeches

GBPUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	0.53%	70.6 Pips
Week to-date	0.79%	105.4 Pips
September	1.93%	254 Pips

Upcoming key events (London Time)

Thu 01:30 PM USD GDP annual rate
Thu 02:15 PM GBP Bank of England Monetary Policy Report Hearings
Thu 02:20 PM USD Federal Reserve Chair Jerome Powell speech

What happened lately

In July, the U.S. House Price Index saw a positive shift, rising by 0.1% from the prior month’s figure of -0.1%. According to the Federal Housing Finance Agency (FHFA), this improvement signals a modest recovery in the housing market. This upward movement in house prices can be seen as a sign of growing consumer confidence and stability within the U.S. economy, possibly reflecting improvements in employment and income levels among Americans.

On Tuesday, the GBPUSD currency pair rose by 0.53%, reaching 1.34194. This appreciation could be influenced by a myriad of factors, including market sentiment, economic indicators, and geopolitical developments. Notably, the movement in GBPUSD came ahead of significant upcoming events that could further impact the currency pair.

The upcoming events include the release of the USD GDP annual rate and speeches by key officials such as Federal Reserve Chair Jerome Powell and the Bank of England’s Monetary Policy Committee representatives. These events are likely to create volatility in the foreign exchange market. Specifically, a favorable GDP report or a hawkish tone from Powell could strengthen the USD, potentially reversing some of the gains made by GBPUSD. Conversely, if the Bank of England indicates a tighter monetary policy, this could support further gains for the GBP, making the currency more attractive to investors. Therefore, the recent economic data and the upcoming high-impact events are essential to watch for anticipating future movements in the GBPUSD exchange rate.

Latest from X (Twitter)

Tweets by Office for National Statistics

What can we expect from GBPUSD today?

GBPUSD on Tuesday rose 0.53% to 1.34194. Price is above 9-Day EMA while Stochastic is rising.

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

Looking ahead for the day, immediate upside resistance level is R1 at 1.34507 with break above could target R2 at 1.34819 or figure level area. While towards the downside, we are looking at daily low of 1.33314 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.34223 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 0.79% over the past few days.

Key levels to watch out:

#GBPUSD Trending on Twitter

[custom-twitter-feeds hashtag=”#GBPUSD” num=3 showheader=false]