GBP/USD has been in a volatile corrective structure after a break above 1.2800. For the recent 2 weeks, the price has been stalling between 1.2800 to 1.3000. Today, a good amount of volatility is expected in GBP because of the high impact economic news. Among them is UK CPI report which is expected to rise to 2.6% which previously was at 2.3%. PPI Input is expected to decrease to 0.1% which previously was at 0.4%. Besides, RPI is expected to increase to 3.4% which previously was at 3.1%. On the other hand, we have US Building Permits report which is expected to be unchanged at 1.27M, Housing Starts are expected to increase to 1.26M which previously was at 1.22M, Capacity Utilization report could show a slight increase to 76.3% which previously was at 76.1%. Eventually, Industrial Production report is expected to log a decrease to 0.4% in April from 0.5% in March. GBP has an upper hand over USD currently. However, due to high impact news from the UK and US today we might experience spikes in the market today.
Now let us look at the technical chart. The price is currently in a corrective structure above 20 EMA and horizontal support area of 1.2750-1.2800. Due to yesterday's bullish rejection on the daily candle, now we expect the price to move down towards the support area of 1.2750-1.2800 and reject the sellers off the level and show some bullish move towards next resistance of 1.3370. On the other hand, if the price breaks below 1.2750 with a daily close, then we will consider sell positions with a target towards 1.2550, till then we are in a bullish bias.
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