GBP/USD has been impulsively bullish recently before the price reached the resistance area of 1.30 on Friday. As of the recent bad economic reports, GBP has been quite weaker against USD this week and expected to remain weak for some period. BOE Gov. Carney is quite hawkish about the Pound future and hinted rate hike in his last speech. Carney believes Pound is going to get back its strength very soon and Brexit effect is fading away slowly. Yesterday GBP ISM Manufacturing PMI report was worse than expected at 54.3 which was expected to be at 56.4 and this report did help the USD to gain some momentum against GBP recently. Today GBP Construction PMI report was published which also failed to show any rise from the previous value of 56.0, it was published with 54.8 which was expected to be at 55.0. On the USD side, today all US banks and financial institutions are closed due to the observance of Independence Day which means other currencies against USD has the advantage to gain over USD today. To sum up, GBP is currently struggling to keep the gains constant today despite the holiday observed in the USA, it is expected that USD is going to gain much further against GBP in the coming days.
Now let us look at the technical view, the price has already rejected the bulls in this market after the worse Construction PMI report published today. Currently, USD is quite stronger in comparison to GBP despite the holiday observed which clearly signifies USD is more powerful than GBP currently. Price is currently above the support area of 1.2750-1.2800 and as the price remains above this level and 20 EMA the bullish bias is expected to continue with a target towards 1.3370 resistance level but for few upcoming days further bearish pressure in this pair expected to take the price down to 1.2750-1.2800 support area. If the price breaks below 1.2750 with a daily close then our bias will change to bearish with a target towards 1.2550.
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