GBP Weekly Forecast (Jan. 20 – 24)

We’ve got jobs data and a couple of leading indicators coming in from the U.K. economy this week. Here’s what’s up!

Employment reports (Jan. 21, 9:30 am GMT)

• Claimant count change for December to show 33.4K increase in joblessness
• Unemployment rate to hold steady at 3.8%
• Average earnings index to tick lower from 3.2% to 3.1% in the three-month period ending in November
• Weaker than expected results could put more downside pressure on the pound

Flash PMI readings (Jan. 24, 9:30 am GMT)

• Flash manufacturing PMI to climb from 47.5 to 48.8 to signal slower contraction
• Flash services PMI to improve from 50.0 to 51.1 to reflect stronger expansion

Technical snapshot

• The short-term trend strength analysis tool shows that most pairs are in bearish territory.
• GBP/AUD and GBP/JPY are on a weakening bullish trend while EUR/GBP is still bullish.

• Most pairs are on neutral grounds based on stochastic, with the exception of GBP/CHF which is looking bullish.

Missed last week’s price action? Read GBP’s price recap for January 13 – 17!