GBP/USD has been stalling for days above the support area of 1.2750-1.2800 after the impulsive bullish move last week. Today, GBP is currently showing some bullish pressure despite the negative report on Public Sector Net Borrowing, which increased to 4.4B which was expected to be at 2.6B. On the other side, some important news is due today in the US like HPI report which is expected to be at 0.1% which previously was at 0.0%, CB Consumer Confidence which is expected to be at 123.7 which previously was at 125.6, New Home Sales report is expected to be at 590k which previously was at 592k and Richmond Manufacturing Index is expected to be at 18 which previously was 22. As of the forecasts of US news today, expectations are quite negative causing a downward bias on USD. However, any positive news from the US could provide a good push to USD to recover against GBP today.
Now let us consider the technical view. The price is currently residing just above the support area of 1.2750-1.2800 in a corrective structure. According to this scenario, if we see any daily close above 1.2800 then we will be planning buy positions with a target towards the 1.3370 resistance level, though it is a long-term target. As there are no such barriers between the levels, we might see a robust move while the pair is trying to reach the 1.3370 resistance level.
