GBP/USD has been quite volatile and indecisive recently which led the price to reside above 1.2850. This is expected to lead to further bullish momentum. Earlier, GBP has been dominated consistently by USD which is currently facing bullish pressures in the pair.
Recently while USD has been struggling on the back of sour economic reports, GBP has been quite stable and firm amid fundamentals which led to certain gains on the GBP side currently. This week on Thursday, the UK M4 Money Supply report is going to be published which is expected to increase to 0.2% from the previous value of -0.3%, Mortgage Approvals are expected to slightly decrease to 65k from the previous figure of 66k, and Net Lending to Individuals are expected to increase to 5.5B from the previous figure of 5.4B.
On the other hand, today US Goods Trade Balance report is going to be published which is expected to decrease to -68.6B from the previous figure of -67.9B, Prelim Wholesale Inventories report is expected to be unchanged at 0.1%, S&P/CS Composite-20 HPI report is expected to decrease to 6.4% from the previous value of 6.5%, and CB Consumer Confidence report is also expected to decrease to 126.6 from the previous figure of 127.4. Ahead of the Prelim GDP report which is due tomorrow with an expectation of a decrease to 4.0% from the previous value of 4.1%, USD is currently quite soft.
Meanwhile, GBP is currently quite optimistic ahead of the upcoming economic reports whereas USD is expected to struggle further amid downbeat forecasts for the upcoming economic reports. Though USD used to be the dominant currency, GBP is expected to regain its momentum if it manages to perform better or as expected.
Now let us look at the technical view. The price has been quite bullish with the recent momentum which led the price to reside above 1.2850 with a daily close. Though the dynamic level is still trying to hold the price lower which lead to certain indecision in the pair. As the price remains above 1.2850 with a daily close, it is expected to push higher with target towards 1.3050 and later towards 1.3200 area. On the other hand, if the price pushes back below 1.2850 again then the bearish trend pressure is expected to continue again with strong momentum with a target towards 1.2550 in the future.
SUPPORT: 1.2850, 1.2550
RESISTANCE: 1.3050, 1.3200
BIAS: BEARISH
MOMENTUM: VOLATILE
