GBP/USD has been trading in a corrective volatile structure recently due to negative economic reports from both the UK and the US. Yesterday, the UK posted Services PMI report which revealed a downbeat reading of 53.8 from 55.8 previously which was expected to be at 55.1. Today, BRC Retail Sales Monitor Report also came out with a negative figure at -0.4% which previously was at 5.6%. Yesterday, GBP managed to gain some strength with a daily close against USD yesterday as the US published worse economic report. However today, it seemed to lose some grounds against USD. Today, the US will publish JOLTS Job Opening report which is expected to decline to 5.65M from 5.74M previously. besides, IBD/TIPP Economic Optimism is expected to dip marginally to 51.6 from 51.3 earlier. As both the US economic reports are not high impact, the market is expected to consolidate further before establishing a proper trend in this pair.
Now let us look at the technical chart. The price is currently being rejected off the trendline resistance. As the price remains below the trendline in the intraday, the price is expected to move down towards 1.2800 support level. On the other hand, if the price breaks above the trend line with a H4 close, then we will consider buy positions with an upward target at 1.3050 resistance level. As the market is currently in a larger corrective structure, we have both way open to trade as no obvious trend is established in this pair yet.
