GBP had a dramatic fall today towards 1.2416 and currently is showing some volatility off the support area. Today GBP inflation report was held, where it had some negative outcome about inflation rate hike and Public Sector Net borrowing which came out at -9.8B which was expected to be -14.4B. It led to a marked fall in this pair. On the other hand, US Flash Manufacturing PMI is expected to be 54.7 which was previously 55.0 and US Flash Services PMI is expected to be 55.8 which was previously 55.6. A good amount of volatility is expected after the USD news is published in the market.
Now let us look at the technical view. At the moment the market is very corrective and showing lower highs towards the support. The price is currently rejecting from the support area between 1.2416 and 1.2385. If the price remains above the support area, it is expected that the price will move higher towards 1.2515-50 resistance area. On the other hand, if the price shows a daily close below 1.2385, the bias will be changed directly to bearish and we will target 1.2120 as the next downward target for this pair.
