After a series of impulsive bearish candles bouncing off the 1.4375 area, GBP/USD is currently showing some bullish intervention to proceed with certain retrace along the way before continuing its bearish trend. GBP has been struggling with the worse economic reports published recently whereas USD gained momentum last week with positive reports showing development in the housing sectors. Today GBP Public Sector Net Borrowing report was published with positive result of a deficit of -0.3B from the previous figure of -0.4B which was expected to increase to 1.1B and CBI Industrial Orders Expectations report was published unchanged as expected at 4. On the USD side today, CB Consumer Confidence report is going to be published which is expected to decrease to 126.00 from the previous figure of 127.7, New Home Sales is expected to increase to 625k from the previous figure of 618k and Richmond Manufacturing Index is expected to increase as well to 16 from the previous figure of 15. As of the current scenario, USD is expected to continue its bearish impulsive pressure in the future but certain retracement is expected along the way as upcoming USD economic reports are expected to have dovish outcomes.
Now let us look at the technical view. The price is currently residing at the edge of 1.3950 support area from where it is expected to push higher towards 1.4050-1.41 resistance area before showing further bearish pressure in the pair. The price has already breached the recently higher low after the Bearish Divergence which does indicate the successful counter momentum the pair has completed. As the price remains below 1.4050-1.41 area, the bearish bias is expected to continue.
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