GBP/USD has been quite volatile below 1.2850 which is expected to retest before pushing lower again with the trend in the coming days. Due to BREXIT impact and worse economic reports, GBP has been struggling with the gains against USD which is expected to extend further lower in the coming days.
Today GBP Rightmove HPI report was published with a decrease to -2.3% from the previous value of -0.1% which did not impact the GBP gains in the process and expected to lead to certain bullish momentum for a certain period in the process. Ahead of the GBP Inflation Report Hearings next week, GBP is expected to be quite volatile with the upcoming gains in the pair.
On the USD side, this week USD FOMC Meeting Minutes and FED Chair Powell is going to speak which is expected to inject volatility in the pair. Though there are certain assumptions that due to US Tariff, the economy is going to suffer a lot in the future, USD is still going strong in the market. Today FOMC Member Bostic is going to speak about the upcoming interest rate decisions and monetary policies which are expected to add to the USD gains in the coming days ahead of high impact economic events this week.
As of the current scenario, USD is still quite strong fundamentally and technically whereas certain gains on the GBP might be observed in the market leading to a short-term retrace along the way. Though the market may act quite volatile ahead of the high impact USD report this week and GBP report next week, whereas USD is expected to have an upper hand in the long-term.
Now let us look at the technical view. After the price has breached below 1.2850 with a daily close, the price has pushed a bit higher recently which is expected to lead to a retrace towards 1.2850 before pushing lower with the trend with a target towards 1.2550 area in the coming days. As the price remains below 1.2850 with a daily close, the bearish bias is expected to continue.
SUPPORT: 1.2550
RESISTANCE: 1.2850
BIAS: BEARISH
MOMENTUM: VOLATILE
