GBPUSD drops slightly but shows overall positive trend for September

GBPUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	-0.01%	-1.3 Pips
Week to-date	-0.01%	-1.5 Pips
September	1.63%	214.7 Pips

Upcoming key events (London Time)

No major events for the day.

What happened lately

The United States saw a slight improvement in the Chicago Purchasing Managers’ Index (PMI) for September, which increased to 46.6 points from 46.1 points in August. The PMI, which is a measure of the economic health of the manufacturing sector, indicates that while there was a small uptick, the index remains below the 50-point threshold that separates expansion from contraction. This slight increase, however, suggests a marginal improvement in manufacturing activity.

In the United Kingdom, economic growth appears to be slowing. According to data from the Office for National Statistics, the country’s Gross Domestic Product (GDP) over a 12-month period in the second quarter dropped to 0.7%, down from 0.9% in the first quarter. Additionally, when looking at a three-month period, the GDP in the second quarter decreased to 0.5% from 0.6% in the first quarter. This decline in GDP indicates that the UK’s economic growth is losing momentum, which could signal potential challenges ahead for the British economy.

The GBPUSD currency pair experienced minimal movement on Monday, dropping by 0.01% to 1.33809. Despite this marginal drop, the pair ended September up by 1.63%, or 214.7 pips higher, indicating an overall positive trend for the month. Given the lack of major events for the day, the currency pair remains in consolidation. The recent economic data suggests a mixed outlook: while slightly better manufacturing data from the US might strengthen the dollar, the weakened UK GDP figures could exert downward pressure on the pound. Balancing these factors, the GBPUSD pair could see limited volatility in the immediate term, though with a potential for more pronounced movement as new economic data emerges.

Latest from X (Twitter)

Tweets by Office for National Statistics

What can we expect from GBPUSD today?

GBPUSD on Monday dropped -0.01% to 1.33809. Price is above 9-Day EMA while Stochastic is falling.

Updated daily direction for GBPUSD looks mixed as the pair is likely to consolidate above 1.33462 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.34230 or trades above daily pivot 1.33846. Break above could target R1 at 1.34193. While to the downside, we are looking at 1.33462 (S1) and daily low of 1.33499 as support levels. GBPUSD need to break on either side to indicate a short-term bias. A close below 1.33499 would indicate selling pressure.

For the week to-date, take note that GBPUSD is mixed as compared to the prior week.

GBPUSD ended month of September trading session up by 1.63% or 214.7 pips higher.

Key levels to watch out:

#GBPUSD Trending on Twitter

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