GBP/USD has been quite bearish recently above the support area of 1.3850-1.3950 from where the price is expected to push lower in the coming days. Ahead of the high impact economic reports this week, USD is expected to take the lead in the pair whereas mixed economic reports of GBP published recently is holding the currency back. Today USD Core Durable Goods Orders report is going to be published which is expected to decrease to 0.4% from the previous value of 0.7%, Durable Goods Orders report is expected to be negative at -2.4% from the previous positive value of 2.8%, Goods Trade Balance report is expected to be unchanged at -72.3B and CB Consumer Confidence is expected to have slight increase to 126.2 from the previous figure of 125.4. Moreover, today Fed Chair Powell is going to testify the upcoming monetary policies and interest rate hike in March 2018. On the other hand, today we had no GBP economic report to help the currency to protect its grounds but on Thursday Manufacturing PMI report is going to be published which is expected to have slight decrease to 55.1 from the previous figure of 55.3 and Net Lending to Individuals is expected to increase to 5.4B from the previous figure of 5.2B. Moreover, on Friday Construction PMI is expected to increase to 50.5 from the previous figure of 50.2 along with Prime Minister May and Bank of England Governor Carney to speak about upcoming monetary policies and economic developments of Britain. As of the current scenario, USD is expected to take the lead until GBP comes up with positive economic report and development possible in the Friday events to push back higher in the future.
Now let us look at the technical view. The price is currently residing at the edge of 1.3850-1.3950 support area from where the price is expected to break below 1.3850 and proceed lower towards 1.36 support area in the coming days. There has been a number of bullish rejections along the way from where the Pre-Breakout Squeeze structure is formed. As the price remains below 1.4050 area, the bearish bias is expected to continue further.
