GBP/USD has been correcting itself above the support area of 1.3850-1.3950 for a few days now from where the price is expected to push higher in the coming days. Today GBP has been quite mixed with the economic reports but positive Claimant Count is expected to help the economy grow better in the coming days. Today GBP Average Earning Index report was published unchanged as expected at 2.5%, Claimant Count had a better figure of -7.2k decreasing from the previous figure of 8.6k which was expected to be at 2.3k, Public Sector Net Borrowing was also published with positive report of decrease to -11.6B from the previous figure of 1.0B which was expected to be at -11.5B, Unemployment Rate was slightly increased to 4.4% which was expected to be unchanged at 4.3% and Inflation report hearing is going on currently which is expected to have positive impact on the GBP gains in the coming days. On the other hand, today USD Flash Manufacturing PMI report is going to be published which is expected to have slight decrease to 55.4 from the previous figure of 55.5, Flash Services PMI is expected to have slight increase to 53.8 from the previous figure of 53.3 and Existing Home Sales increase to 5.61M from the previous figure of 5.57M. Moreover, today in the FOMC Meeting Minutes, upcoming Rate Hike in March is expected to be discussed which is expected to have a certain impact in the upcoming gains of USD. As of the current scenario, GBP is expected to gain good momentum against USD which may lead to further bullish pressure in the coming days.
Now let us look at the technical view. The price is currently residing at the edge of 1.3850-1.3950 support area with a dynamic level of 20 EMA holding the price as well. The price is currently expected to push higher towards 1.4250 price area in the coming days as it remains above the support area with a daily close.
