Fundamental Analysis of GBP/USD for August 30, 2017

GBP/USD has recently shown a good rejection of bulls with a daily close which does indicate further bearish pressure in this pair. GBP has been quite neutral this week after the summer bank holiday celebrated recently whereas USD is expected to gain some momentum in the coming days. Today, GBP Net Lending Cash to Individuals report is going to be published which is expected to decrease to 5.3B from the previous value of 5.6B, M4 Money Supply is expected to be positive at 0.4% from the previous value of -0.2% and Mortgage Approvals is expected to increase to 66k from the previous value of 65k. The expectations of the currency reports are quite positive today whereas any negative or worse outcome may lead to further weakness of the currency against USD in the coming days. On the USD side, today ADP Non-Farm Employment Change report is going to be published which is expected to increase to 185k from the previous figure of 178k, Prelim GDP is expected to increase to 2.7% from the previous value of 2.6%, Prelim GDP Price Index report is expected to be unchanged at 1.0% and Crude Oil Inventories report is expected to show less deficit at -1.8M from the previous figure of -3.3M. Along with these economic reports being published today FOMC Member Powell is going to speak about nation's key interest rates and future monetary policies which are expected to have a lower impact on the market today. To sum up, USD has been quite promising with the economic reports this week and further positive reports will lead to more gains against GBP for the coming days. Currently, as of the forecasts of USD economic reports, USD is expected to gain greater momentum against GBP in the future.

Now let us look at the technical view, the price has recently rejected off the trend line resistance which is expected to start the bearish pressure again in this pair with a target towards the support area of 1.2750-1.2800. If the price breaks below 1.2750 with a daily close in the coming days then further bearish move with a target towards 1.2550 is expected in the future. As the price remains below the trendline resistance with a daily close the bearish bias is expected to continue further.

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