GBPUSD on Thursday dropped -0.25% to 1.2016. Selling pressure. Why it matters.

GBPUSD by TradingView

Performance after Thursday
Period	Pct	Chg	Momentum
Thursday	-0.25%	-30.2 Pips
Week to-date	-0.20%	-23.5 Pips
February	-2.47%	-303.9 Pips

Upcoming key events (London Time)

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What happened lately

📆 🇺🇸 USD Core Personal Consumption Expenditures (QoQ) in Q4 preliminary estimate exceed forecast and rose to 4.3% compared to previous figure 3.9% in Q3. Source
📆 ☢️ 🇺🇸 USD Gross Domestic Product Annualized in Q4 preliminary estimate below forecast and dropped to 2.7% compared to previous figure 2.9% in Q3. Source
🇺🇸 📆 USD In the week ending 18 February, the Initial Jobless Claims dropped to 192K compared to previous figure 195K (revised from 194K). Source
📆 🇺🇸 USD Chicago Fed National Activity Index in January exceed forecast and rose to 0.23 points compared to previous figure -0.46, revised from -0.49 points in December. Source
📆 🇺🇸 USD S&P Global Composite PMI in February preliminary estimate exceed forecast and rose to 50.2 points compared to previous figure 46.8 points in January. Source
📆 🇺🇸 USD S&P Global Services PMI in February preliminary estimate exceed forecast and rose to 50.5 points compared to previous figure 46.8 points in January. Source
📆 ☢️ 🇬🇧 GBP S&P Global/CIPS Services PMI in February preliminary estimate exceed forecast and rose to 53.3 points compared to previous figure 48.7 points in January. Source

What can we expect from GBPUSD today?

GBPUSD on Thursday dropped -0.25% to 1.2016. Price is below 9-Day EMA while Stochastic is rising.

Updated daily direction for GBPUSD looks bearish as the pair posted lower in Thursday trading session.

Looking ahead for the day, immediate support level is at 1.19797 (S1) with break below could see further selling pressure towards 1.19435 (S2). To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.2075 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. GBPUSD need to break on either side to indicate a short-term bias. A close below 1.1991 would indicate selling pressure.

For the week to-date, take note that GBPUSD is mixed as the current price action remain uncertain due to trader indecisiveness.

Key levels to watch out:

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Minutes of the Federal Open Market Committee, January 31–February 1, 2023 Source: Federal Reserve

Last updated: 11:34 pm UTC, 23-Feb 2023

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