GBP/USD has been quite volatile lately, currently showing some bearish pressure towards the support level of 1.3370. The pound broke lower as the US dollar was gaining momentum amid the crash in the stock market, hawkish economic events, and reports published recently. Today the UK High Street Landing report was published with a slight increase to 41.8K in comparison with the previous figure of 41.6K and expectations of 41.7K. Though the report showed a positive result, the sterling kept declining till now as the market sentiment shifted towards buying the dollar against major currencies. On the USD side, today the CB Consumer Confidence report was published, which showed a slight decrease to 119.8 from the previous figure of 120.4 compared to forecasts of 119.9. The US New Home Sales report also showed a decrease to 560K from the previous figure of 580 against expectations of a rise to 585K. Additionally, FOMC Member Brainard and Fed Chair Yellen are going to speak today about the nation's key interest rate and future monetary policy, which is expected to be hawkish in nature. To sum up, GBP has been seeing some consolidation and currently some downfall leading to further gain on the USD side. If today Yellen speaks positively about the upcoming economic projections, then we might see a more impulsive bearish move taking the price lower to 1.30 again.
Now let us look at the technical view. The price is currently showing bearish pressure after rejecting the bullish momentum earlier today. Currently, the price is expected to reach 1.3370; and if the price breaks below 1.3370 with a daily close, then we will expect the price to fall to the 1.3050-1.3120 support area in the coming days before the price jumps up again to continue with the bullish trend. As the price remains above 1.30, the bullish bias is expected to continue further.
