Last week, the GBP/USD ended on a high note at $1.2617, with a modest 0.14% gain. But hold on tight, because the upcoming week is brimming with exciting events that could shake up this currency duo.
- The market’s pivotal moment rests at $1.2578, a pivotal juncture that will determine its future trajectory.
- Bullish traders face a formidable barrier at $1.2827, with further challenges at $1.2994 and $1.3142, creating an exhilarating uphill battle.
- Conversely, bearish pressure may find support at $1.2459, followed by tempting opportunities at $1.2309 and $1.2126, enticing buyers to enter the market.
Technical Indicators
- The market’s pulse is steady as the Relative Strength Index (RSI) hovers around 50, revealing a neutral sentiment among traders.
- Meanwhile, the 50-day Exponential Moving Average (EMA) stands at $1.2544, hinting at a fierce battle between bullish and bearish forces.
- Keep an eye on the discernible downward trendline near $1.2825, as it could prove to be a formidable resistance point. However, a break below $1.2580 could potentially trigger a selling frenzy.
Economic Events Impact
- The U.S. Manufacturing PMI data (anticipated to be at 48.5) takes center stage on Monday, potentially impacting market sentiment and the strength of the dollar.
- Tthe U.S. ADP Non-Farm Employment Change (predicted at 149K) and Non-Farm Employment Change (expected at 205K) make their grand entrance on Wednesday and Friday, setting the tone for market dynamics.
- The highly anticipated release of the U.S. ISM Services PMI, projected to hit 52.7, and the GBP’s Construction PMI, expected to land at 49.8. These two reports, set to unveil on Wednesday and Friday, will unveil the current state of the service industry and offer valuable insights into its overall health.
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Conclusion
As traders eagerly eye the GBP/USD pair, all signs point to a bullish outlook as it hovers above the crucial $1.2578 pivot point. But don’t let your guard down just yet – with the U.S. economy in the spotlight, upcoming events like manufacturing and employment data could hold the key to the market’s next big move.