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GBP/USD Weekly Chart Analysis

GBP/USD in a Bearish range, upcoming UK Unemployment figures and UK GDP figures in play

The GBP/USD currency pair faces significant upcoming economic events that could impact its performance. Key factors to watch include the UK’s Employment Change and Unemployment Rate figures. In the previous release, the UK reported an employment change of -66,000 and an unemployment rate of 4.20%. Market consensus now expects an employment change of -80,000 and an unemployment rate of 4.30%. If these figures align with consensus expectations, the impact on GBP/USD may be limited. However, any substantial deviation from these forecasts could trigger market reactions and influence the GBP’s value against the USD.

Technical Analysis:
The GBP/USD pair is currently exhibiting a range-based bearish momentum on the weekly chart. Several technical indicators suggest potential price movements:

Scenario 1 (Bullish):
– If the price successfully retests the level at 1.2615, it may continue to rise.
– Resistance levels to watch are at 1.2654, 1.2673, 1.2704, and 1.2727.
– The topmost resistance line is located at 1.2750.

Scenario 2 (Bearish):
– Alternatively, a downward movement could lead to tests of support levels.
– Key support levels include 1.2467, 1.2429, and the significant level at 1.2391.
– Further bearishness may take the price to the 1.2363 to 1.2320 range, with 1.2320 acting as a major support level.

Additional Consideration:
– The Relative Strength Index (RSI) is slightly heading towards oversold territory, indicating potential for a market pullback to bullish sentiment.
– The market’s momentum is currently in a downtrend, but traders should be aware of the possibility of a reversal.

Key Levels to watch are 1.2615,1.2673,1.2523,1.2467,1.2391,1.2320

Level 11.24291.2523
Level 21.23911.2565
Level 31.23201.2615