GBP/USD has been residing inside the price range between 1.3020 and 1.3340 for a good amount time by now whereas the price is currently showing some bullish rejection off the 1.3340 resistance area with some bearish pressure. GBP has been under pressure due to the political issues and the Brexit effect still remains in the country whereas recent US economic reports and events were also quite dovish which have led the price to be indecisive and corrective. Today, the Bank of England's Financial Stability Report was published along with FPC Statement and Bank Stress Test results which were dovish in nature forcing the British currency to lose some grounds against a weaker competitor like USD. On the other hand, FED Chair nominee Powell is going to speak today. He voiced some concern about the Rate Hike effecting the economy in the future. Moreover, FOMC officials Dudley and Harker are also going to speak today. They are expected to express some concern about stubbornly low inflation. On this condition, increasing the funds rate can be bit of a challenge for the economy. Additionally, US CB Consumer Confidence report is due later today with a decrease to 123.9 from the previous figure of 125.9, Goods Trade Balance report is expected to show a greater deficit at -65.0B from the previous figure of -64.1B, Prelim Wholesale Inventories report is expected to increase to 0.5% from the previous value of 0.3%, HPI report is expected to show decrease to 0.6% from the previous value of 0.7%, and S&P/CS Composite-20 HPI report is expected to increase to 6.0% from the previous value of 5.9%. As for the current scenario, FOMC members are worried about the upcoming rate hike which have already affected growth of USD against GBP recently. However, any positive outcome from today's high impact economic reports are expected to push the price lower in the coming days. As rate hike in December is quite imminent despite the outcome after the rate hike in low inflation-based economy, USD is expected to gain ground further against GBP in the future.
Now let us look at the technical chart. The price is currently being rejected off the 1.3340 resistance area with bearish pressure indicating a further bearish move with a target towards 1.3020 support area. The price is still likely to trade in range and go down towards the support area with a corrective price action. As the price remains below 1.3340 resistance area, the bearish bias is expected to continue further.
