GBP/USD is currently quite bearish in nature but having certain volatility along the way between the range of 1.3050 to 1.3320 area, the price is expected to show some bullish momentum in the coming days. Ahead of the upcoming high impact USD and GBP reports and events this week, certain volatility and spikes in the market may be observed.
Today GBP Construction PMI report is going to be published which is expected to have a slight increase to 52.6 from the previous figure of 52.5 and FPC Meeting Minutes is going to be held which is expected to cover the in-depth financial condition of UK and will discuss some important financial decision for the economy. The economic event is expected to have a good impact on further gains of GBP ahead of the upcoming Bank of England Governor Carney's speech this week.
On the other hand, today USD Factory Orders report is going to be published which is expected to increase to 0.1% from the previous negative value of -0.8%, IBD/TIPP Economic Optimism is expected to increase to 54.2 from the previous figure of 53.9 and Total Vehicle Sales report is also expected to increase to 17.0M from the previous figure of 16.9M.
As of the current scenario, both USD and GBP is quite optimistic with the upcoming economic reports to be published today whereas USD might gain certain momentum in the short-term but GBP is expected to counter strong if Carney's speech this week provides a positive outcome for the further economic growth. A weekly close of this week is expected to provide the answer to upcoming definite trend pressure in the pair.
Now let us look at the technical view. The price has formed certain Bullish Divergence in the process which is expected to push the price higher towards 1.3320 area in the coming days from the support area of 1.2850-1.3050. Though the bullish impulsiveness will not be quite visible before it takes out 1.3320 with a daily close in the coming days leading the price to push higher towards 1.37-1.3850 area in the future. As the price remains above 1.2850-1.3050 area, the bullish pressure is expected in this pair.
