GBP/USD has moved up higher with an impulsive price action today after the series of positive economic reports was published. Today, the UK posted a series of solid economic reports one after the other that increased the volatility of the pair. Today, the UK CPI report was published with an increase to 2.9% from the previous value of 2.6% which was expected to be at 2.8%, PPI Input report was increased to 1.6% from the negative value of -0.2% which was expected to be at 1.2%, and RPI report also showed steady growth to 3.9% from the previous value of 3.6% which was expected to be at 3.7%. Along with these economic reports, Core CPI report was published with an increase to 2.7% from the previous value of 2.4% which was expected to be at 2.5%, HPI report was published with an unchanged value at 5.1% which was expected to decrease to 4.8% and PPI Output report showed growth to 0.4% which was expected to be unchanged at 0.1%. On the other hand, today US NFIB Small Business Index report was published which did not much change and was published at 105.3 from the previous figure of 105.2 which was expected to decrease to 104.8. JOLTS Job Opening report is yet to be published which is expected to decrease to 5.96M from the previous figure of 6.16M. To sum up, GBP has grown very strong after the upbeat economic reports published today which made USD to lose a good amount of pips against GBP. As of the current scenario, GBP is expected to gain more against USD in the coming days with some correction along the way.
Now let us look at the technical chart. The price is currently quite bullish and impulsive in nature which is expected to show some corrective price action towards the trend line support and 1.3130 support level before bouncing up higher towards 1.3370 resistance level in the coming days. As the price remains above the 1.3050-1.3130, support area the bullish bias is expected to continue further.
