GBP/USD has been impulsive with the bullish momentum towards the resistance area of 1.3550 to 1.3620. Due to the recent weakness of USD, GBP gained good momentum to dominate earlier, but today's weak economic report made the currency lose some grounds against GBP in the process. Today, GBP Construction PMI report was published with the decreased figure of 52.2 from the previous figure of 53.1, which was expected to be at 52.8. The downbeat economic report helped USD gain some momentum ahead of the NFP and Unemployment Rate reports to be published on Friday this week. On the USD side, today ISM Manufacturing PMI report is going to be published which is expected to have a slight decrease to 58.1 from the previous figure of 58.2, Construction Spending is anticipated to drop by 0.6%, ISM Manufacturing Prices are projected to decline to 64.8 from the previous figure of 65.5, and Total Vehicle Sales are expected to be unchanged at 17.5M. As of the current scenario, USD economic reports are expected to be quite mixed, but any positive economic report on USD today and in the coming days, including the NFP, Average Hourly Earnings and Unemployment Rate, will have a significant impact on the gains of USD against GBP where USD is expected to dominate.
Now let us look at the technical view. The price is currently residing inside the resistance area of 1.3550 to 1.3620. where a break below 1.3550 with a daily close will inject impulsive bearish pressure in the pair that might push the price towards the 1.3300 support area in the coming days. The resistance area, the price is currently residing in, has already pushed the price lower earlier. As of the earlier behavioral analysis, the price is expected to push down in the coming days. As the price remains below 1.3620 with a daily close, the bearish bias is expected to continue further.
