Published on May 1, 2023

Daily Analysis For GBP/USD 01-05-2023

GBP/USD Analysis

Economic Events and Scenario for GBP/USD

Economic Events: -

GMT	Event	Impact	Currency
00:00	(Australia) Judo Bank Manufacturing PMI	High	AUD
01:00	(Austria) Labor Day	None	EUR
01:00	(Belgium) Labor Day	None	EUR
01:00	(China) May Day	None	CNY
01:00	(Cyprus) Labor Day	None	EUR
01:00	(Ecuador) Labor Day	None	USD
01:00	(El Salvador) Labor Day	None	USD
01:00	(Estonia) Spring Day	None	EUR
01:00	(Euro Area) Labor Day	None	EUR
01:00	(Finland) May Day	None	EUR
01:00	(France) Labor Day	None	EUR
01:00	(Germany) Labor Day	None	EUR
01:00	(Greece) Labor Day	None	EUR
01:00	(Ireland) May Day	None	EUR
01:00	(Italy) Labor Day	None	EUR
01:00	(Latvia) Labor Day	None	EUR
01:00	(Lithuania) Labor Day	None	EUR
01:00	(Luxembourg) Labor Day	None	EUR
01:00	(Malta) Labor Day	None	EUR
01:00	(Montenegro) Labor day	None	EUR
01:00	(Portugal) Labor Day	None	EUR
01:00	(Spain) Labor Day	None	EUR
01:00	(United Kingdom) May Day Bank Holiday	None	GBP
01:30	(Japan) Jibun Bank Manufacturing PMI	Medium	JPY
02:00	(Australia) TD-MI Inflation Gauge MoM	Low	AUD
02:30	(Australia) ANZ-Indeed Job Ads MoM	Low	AUD
06:00	(Japan) Consumer Confidence	High	JPY
07:30	(Australia) Commodity Prices YoY	Low	AUD
09:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
09:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
09:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
09:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
09:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
09:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
09:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
14:30	(Canada) S&P Global Manufacturing PMI	High	CAD
14:45	(United States) S&P Global Manufacturing PMI	High	USD
15:00	(United States) ISM Manufacturing Prices	Low	USD
15:00	(United States) ISM Manufacturing New Orders	Low	USD
15:00	(United States) ISM Manufacturing Employment	Medium	USD
15:00	(United States) Construction Spending MoM	Low	USD
15:00	(United States) ISM Manufacturing PMI	High	USD
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD

Today's Scenario: - The GBP/USD exchange rate is currently hovering near the highest levels since June 2022, following two consecutive weeks of gains. Traders are gearing up for a key week, which includes multiple central bank meetings, including the Federal Reserve, as well as the release of the US jobs report. The Cable pair is trading around 1.2570 and is defending the previous day's gains near the multi-day high during early Monday in Asia.

Hopes of another positive development on the Brexit front, specifically easier travel to and from Europe during the holiday season, initially supported the GBP/USD pair's upward momentum in the previous week. This could be linked to UK Prime Minister Rishi Sunak's push for rules that can help boost holiday spirits after the long-awaited Brexit deal is sealed.

Buy Scenario: - To target the First Major Resistance Level (R1) at $1.2617, the Pound must stay above the pivot point of $1.2532. If the Friday high of $1.25837 is breached, it could signal an extended breakout session. However, the Pound would require support from First Republic Bank and US economic data to maintain the upward momentum.

If the GBP/USD continues to rally, it may test the Second Major Resistance Level (R2) at $1.2669, followed by the Third Major Resistance Level at $1.2806. Till we do not advise to buy GBP/USD.

Sell Scenario: - On the downside, if the pivot point is breached, the First Major Support Level (S1) at $1.2480 could come into play. It is unlikely for the GBP/USD to drop below $1.2450 and the Second Major Support Level (S2) at $1.2394, barring a sharp sell-off fueled by weak US economic data. The Third Major Support Level (S3) is located at $1.2257. Till then we do not advise selling GBP/USD.

Support and Resistance Level: -