GBP/USD is currently inside the corrective structure between 1.2410-1.2550. The BREXIT process seems to be providing a trend in coming days for the pair. Today, GBP Construction PMI report was published where it did not provide any high impact in the market as the expected value 52.5 and actual value of 52.2 was quite nearer to each other. On the other hand, USD has Trade Balance report to be published today which previously was at -48.5B and today expected to be at -46.0B and Factory Orders report which previously was at 1.2% and expected to show a decrease at 1.0%. Currently the pair is going under indecision and counter impulsive movement every day. As the BREXIT process is coming to an end and UK is finally getting out of the EUR, it is expected that GBP to encounter a long-term fall against USD after gaining some short-term strength.
Now let us look at the technical view, the price is currently residing below the resistance area of 1.2525-1.2550 and today the price found dynamic support of 20 EMA and horizontal support 1.2410. The price is currently inside the traffic area where previously we have seen the price to correct for a longer period of time, so as long as the price remains below the resistance area we will be bearish bias. If the price breaks above 1.2550 with a daily close then we will be looking forward to buy with an upward target towards 1.2800 resistance.
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