GBP/USD has been bearish in nature recently which has led the price to break below 1.3370 support level. USD has been quite positive in nature recently ahead of NFP and Unemployment Rate report to be published on Friday. After a great amount of non-volatile bullish pressure, the pair has recently countered with an impulsive bearish pressure which is expected to continue until any positive economic reports of GBP gets published. GBP has been going through a negative phase since the Brexit took place and as the UK Prime Minister May recently stated it is going to take more years to recover the Brexit effect which suddenly changed the bias of the market whereas USD has been quite positive to take the advantage. Today, GBP Construction PMI report is going to be published which is expected to have an unchanged figure of 51.1 and FPC Meeting Minutes is going to be held where in-depth insight of the financial condition of the economy and further decisions will be discussed. As the economic report and event are expected to have a good impact in the market, so any positive result will lead to gains on GBP or else it will add to USD gains. On the USD side, today FOMC Member Powell is going to speak about nation's key interest rates and future monetary policy which is expected to be neutral in nature and Total Vehicle Sales report is expected to show growth to 16.9M from the previous figure of 16.1M. To sum up, USD has been quite positive with the economic reports and events recently which lead to further gains against GBP and any positive report on USD and negative report of GBP will enhance the bearish pressure in the market. As of the current market sentiment, USD is expected to have an upper hand over GBP.
Now let us look at the technical view, the price has broken below the 1.3370 recently and it is expected to lead to further bearish pressure in the market towards the trend line support and horizontal support area of 1.3050-1.3120. Currently it is expected to show short term bullish move towards the dynamic level of 20 EMA before it pushes lower towards the support area. As the price remains below the dynamic level resistance and 1.3370 horizontal resistance the bearish bias is expected to continue further.
