GBP/USD gained ground on Tuesday, surpassing the 1.2700 mark following the release of disappointing US economic data. The US Dollar (USD) weakened as a result, but market sentiment remains subdued ahead of Federal Reserve (Fed) Chairman Jerome Powell's upcoming testimonies.
Factors Influencing GBP/USD
US Economic Data Misses Expectations
- The US ISM Services Purchasing Managers Index (PMI) and Factory Orders fell below forecasts, indicating a slowdown in the US economy.
- The missed expectations weighed on the USD, pushing it lower against the GBP.
US Politics Dominate Market Focus
- Super Tuesday, a key primary election day in the US, is expected to set the stage for Republican candidate Donald Trump's nomination.
- Political uncertainty surrounding the US election is influencing market sentiment.
UK Economic Update
- The UK's BRC Like-For-Like Retail Sales missed expectations, showing a mere 1.0% growth compared to the predicted 1.6%.
Fed Chairman Powell's Testimony
- Fed Chairman Powell will testify before the US Congress on Wednesday and Thursday to provide his insights on the Fed's monetary policy report.
- Market participants anticipate significant headlines during both days as Powell addresses questions about the US economy and the Fed's outlook.
Upcoming US Labor Figures
- ADP Employment Change figures are expected to rise to 150K, while Nonfarm Payrolls (NFP) are projected to decline to 200K.
- Labor market data could further impact the GBP/USD exchange rate.
Technical Analysis
GBPUSD Hourly Chart
- GBP/USD has risen above resistance at 1.2700.
- Momentum remains limited, with mixed market sentiment.
- A pullback could extend bullish momentum if declines remain below 1.2700.
GBPUSD Daily Chart
- Long-term technical resistance exists at 1.2800.
- The 200-day Simple Moving Average (SMA) continues to trend upwards.
Key GBP/USD Levels
| Level | Type |
|---|---|
| 1.2700 | Resistance |
| 1.2652 | Previous Daily Low |
| 1.2706 | Previous Daily High |
| 1.2558 | Daily SMA100 |
| 1.2632 | Daily SMA20 |
| 1.2674 | Daily SMA50 |
| 1.2579 | Daily SMA200 |
Table: GBP/USD Levels
GBP/USD Market Overview
| Statistic | Value |
|---|---|
| Today's Last Price | 1.2712 |
| Today's Daily Change | 0.0022 |
| Today's Daily Change % | 0.17 |
| Today's Daily Open | 1.269 |
Table: GBP/USD Market Overview
GBP/USD continues to fluctuate amid a confluence of factors, including US economic data, political uncertainties, and upcoming Fed Chairman Powell's testimony. Technical analysis suggests limited momentum, but further developments in these areas could influence the exchange rate's direction.