GBP/USD has been quite corrective recently inside the range of 1.2800 to 1.3050 area. The US holiday at the beginning of the week left the pair with less liquidity in the market resulting in minimal market pressure and correction. Today, the UK BRC Sales Monitor report was published with a rise to 1.3% from the previous value of 0.9%, but the report still could not show any directional bias in this pair. Moreover, the UK Services PMI report is going to be published today which is expected to have slight decrease to 53.5 from the previous figure of 53.8. On the other hand, FOMC Member Brainard is going to speak today about the US key interest rates and future monetary policies that is expected to reveal the neutral stance. Factory Orders report is expected to show a decrease to -3.3% from the previous value of 3.0%, IBD/TIPP Economic Optimism is expected to have a slight increase to 53.1 from the previous figure of 52.2. Later today, FOMC Member Kashkari is also going to speak about the interest rates and future monetary policies of the nation. To sum up, a batch of high impact economic reports from the UK and the US are going to be published today that is expected to bring in more liquidity and volatility in the market. A directional bias is likely to be detected in the market by the daily close. In the current scenario, USD is expected to have an upper hand over GBP and dominate it further in the coming days.
Now let us look at the technical chart. The price has been quite corrective in nature after being respected by the trend line of March 2017. As the price remains below the trend line and 1.3050-1.3120 resistance area, the bearish bias is expected to continue further with a recent target towards 1.2750-1.2800 support area in the coming days.
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