GBP/USD has been quite volatile and corrective recently since the recent Rate Hike which put the market into an indecisive phase. GBP has been going through lots of ups and downs due to political unrest in the UK and some economic issues which has confused the market sentiment which resulted in indecision and corrections. Today, UK Public Sector Net Borrowings report was published with an increased figure of 7.5B from the previous figure of 4.4B which exceeded the expectation limit of 6.6B. As the Net Borrowing report increase was negative, the British currency has already started to show some weaknesses. Additionally, UK inflation report is due later today which is expected to be quite neutral in nature and CBI Industrial Orders Expectation report is expected to have a positive result of 3 increasing from the previous negative figure of -2. On the USD side, today Existing Home Sales report is going to be published which is expected to increase to 5.42M from the previous figure of 5.39M. Moreover, this week the FOMC meeting is going to take place which is expected to have a positive impact for USD gains amid a highly possible rate hike decision in December. As of the current scenario, USD is expected to gain further momentum over GBP in the future amid better economic reports. Ahead of the US Fed rate hike, every economic event in the US is expected to put pressure on GBP and help with USD gains.
Now let us look at the technical chart. The price is currently residing at the edge of resistance area of 1.3300 from where the price is expected to push lower. The price has formed a Wedge structure which is expected to break on the downside with a vision of creating new lows in the coming days. Currently the price is expected to proceed down towards 1.31 support area and if the price breaks it with a daily close then later the price is expected to proceed further down towards 1.2800 support area. As the price remains below 1.3300 area, the bearish bias is expected to continue further.
