GBP/USD is currently in an indecisive phase after an impulsive bullish breakout above the 1.3120 resistance level recently. The trend structure is quite non-volatile which is signaling about further bullish pressure in this pair. Recently GBP has shown an increase in Manufacturing PMI report at 55.1 from the previous value of 54.2 which was expected to be at 54.4. Today GBP Construction PMI report is going to be published which is expected to slightly decrease to 54.2 from the previous value of 54.8 and BRC Shop Index report is expected to show some positive change which previously was negative at -0.3%. Though the Bank of England rate hike decision is pending and any positive or negative result on the Interest Rate decision will lead to further correction or gain in this pair in the future. On the USD side, today ADP Non-Farm Employment Change report is going to be published which is expected to increase to 187k from the previous value 158k and Crude Oil Inventories is expected to show less deficit to -4.4M from the previous value of -7.2M. USD has been quite negative with the economic reports and as of the policy discussed by Trump about the Dollar, weakness can lead to further weakness leading to further gains on the GBP side in the future.
Now let us look at the technical view, the price has been quite indecisive recently which is expected to lead to bearish pressure in the market. As the price has broken above the 1.3120 with an impulsive market pressure the following corrective retracement is quite expected in the current situation. The price is expected to reach 1.3120 before proceeding up higher with a target towards 1.3370 resistance level in the coming days. As the price remains above the 1.3120 with a daily close the bullish bias is expected to continue further.
No comments:
Post a Comment