GBP/USD is still in the corrective structure above the support area of 1.2350-1.2400. Today a few economic reports were published in the UK and majority of the reports showed positive data. As a result, GBP gained some strength today. Today the UK CPI report was published with a positive figure at 2.3% which was expected to be at 2.2%. PPI Input report was also published positive at 0.4% which was expected to be negative at -0.5%. PPI Output report was also positive at 0.4% which was expected to be at 0.2%. The only negative report was of HPI which was released with a decrease of 5.8% which was expected to be at 6.1%. On the other hand, JOLTS Job Opening report is due in the US later today which is expected to be at 5.59M which previously was at 5.63M. Currently the market is indecisive but with positive economic reports from the UK GBP is said to have gained advantage over USD by taking the price above the upper support of 1.2400.
Now let us look at the pair from the technical view. The price is currently above the support area of 1.2350-1.2400. In light of positive UK economic reports, USD has failed to maintain the bearish momentum in this pair. Currently the price is being held by the dynamic resistance of 20 EMA and a daily close below the lower support level 1.2350 will signal further bearish pressure in this pair. As the price remains above the support area of 1.2350-1.2400, our bullish bias will continue with a target towards 1.2500-50 resistance area.
