GBPUSD Analysis – November-27-2023

In today’s comprehensive GBPUSD analysis, we will first scrutinize the current economic conditions in the U.S. Following that we will meticulously delve into the details of the technical analysis of the GBPUSD pair.

Texas Manufacturing Hits a Four-Month Low

Reuters – In November 2023, Texas’s manufacturing sector faced its most significant contraction in four months. The Federal Reserve Bank of Dallas reported a continuous decline over three months in their general business activity index for the state’s manufacturing, hitting a low of -19.9 since July. The production index, a key indicator of manufacturing health, also dropped into the negative, registering at -7.2, a steep fall from the previous month’s +5.2. The new orders index, negative for 18 consecutive months, also worsened to -20.5 from -8.8.

Other areas also saw declines. The capacity utilization index, a measure of factory productivity, went back into the negative, decreasing to -10.1 from 5.4. Shipments also fell, reaching -9.5. Labor market data indicated a slight slowdown in employment growth and reduced working hours in November.

Regarding prices, wage growth normalized, while material cost growth remained lower than usual, and selling prices decreased. As of November, expectations for future manufacturing activity in Texas were mixed.

GBPUSD Analysis – November-27-2023

The GBPUSD currency pair experienced a significant price increase in today’s trading session. Bulls pushed the pair above the upper line of the bullish channel. Simultaneously, the RSI indicator entered the overbought zone, and the Awesome Oscillator signaled divergence. This suggests that the GBPUSD price might undergo a correction phase in the upcoming trading session. We anticipate the market relinquishing some of its recent gains and testing the 23.6% Fibonacci retracement level, followed by the 38.2% level.

GBPUSD Analysis - November-27-2023

GBPUSD Analysis – 4H chart

These support zones also offer attractive bid prices for bullish traders to establish new long positions, potentially continuing the bullish trend.

You may also like...