GBP/USD has been in a bullish volatile trend since the break above 1.2800 level. A good amount of correction can be seen in this pair while it moves towards a higher level. However, the counter is expected due to negative economic reports from the United Kingdom. Today the Public Sector Net Borrowing report was published at 9.6B versus the expected reading of 8.0B. Moreover, the CBI sales survey had a drastic fall from 38 to the current level of 2 which was expected to be at 12. The United States revealed the Flash Manufacturing PMI which showed a negative result at 52.5 versus the expected reading of 53.2. At the same time, the Flash Services PMI was positive with an increased figure at 54.0 which was expected to be at 53.3. The New Home Sales report was negative at 569k which was expected to be at 611k. Overall, both currencies in the pair have had negative economic reports recently, so the pair cannot choose the direction and too much volatility has been seen in this case. However, GBP is expected to be weaker in coming days due to high impact negative economic reports in comparison to USD.
Now let us look at the technical view. The price has bounced off from the resistance at 1.30 and currently a good amount of volatility is observed. Today GBP is put under pressure amid negative economic reports. The price is expected to fall back to 1.2800 before showing further upward move with a target towards 1.3370. A daily close below 1.2750 will negate the bullish bias in this pair. Until then we will be looking forward to buy from bounce off 1.2750-1.2800 support area.
