GBP/USD has once again bounced off the support of 1.2750-1.2800 area. Currently, the pair is showing some evidence of bullish bias in the market as the price could not break below the support area after an impulsive bearish pressure on Friday. Today on the USD side, we have CB Consumer Confidence report which is expected to show a slight decrease to 120.1 which previously was at 120.3, Core PCE Price Index is expected to show some positive value at 0.1% which previously was at -0.1% and Personal Spending is also expected to show increased value at 0.4% which previously was at 0.0%. On the GBP side today we don't have any economic events but tomorrow GfK Consumer Confidence is going to be published which is expected to show increased negative figure at -8 which previously was at -7, Net Lending to Individuals report is expected to show a decrease to 4.5B which previously was at 4.7B, M4 Money Supply is expected show an increase to 0.4% which previously was at 0.3% and Mortgage Approvals is expected to show decreased value to 66k which previously was at 67k. As of today, USD has the upper hand and expected to show some gain in this pair but tomorrow GBP might show a good comeback if the price succeeds to remain above the support area today.
Now let us look at the technical view, the price is currently above the support area of 1.2750-1.2800 and as the price remains above the area bullish bias is expected to continue further. If the bullish pressure continues after today's high impact USD economic reports then we will be looking forward to the price to reach 1.3370 in the coming days. On the other hand, if the price breaks below 1.2750 with a daily close today then our bullish bias will change to bearish and we will be looking forward to selling with a target towards 1.2550.
