GBP/USD has been quite impulsive with the bearish pressure recently which has pushed the price lower below 1.2850 area. Ahead of the high impact US economic data, GBP has been struggling with the recent economic reports and Brexit tensions which are expected to be wrapped up by the first quarter of 2019.
Ahead of the UK Services PMI report, which is expected to increase to 53.9 from the previous figure of 53.5, today the Construction PMI report was published with a decrease to 52.9 from the previous figure of 55.8 which was expected to decline to 54.9. Moreover, today the Inflation Report Hearings will be held which is expected to inject superior volatility in the market leading to certain spikes in the price action.
On the other hand, today the ISM Manufacturing PMI Report is going to be published which is expected to decrease to 57.6 from the previous figure of 58.1. The Construction Spending is expected to increase to 0.5% from the previous negative value of -1.1%, ISM Manufacturing Prices is expected to increase to 74.0 from the previous figure of 73.2, IBP/TIPP Economic Optimism is expected to decrease to 57.2 from the previous figure of 58.0 and Total Vehicle Sales is expected to have slight decrease to 16.7M from the previous figure of 16.8M.
As of the current scenario, the pair is expected to be quite volatility throughout the week as high impact events and reports on the both currencies of the pair are going to be published this week which may lead to certain indecisions and spikes in the market. Though USD is expected to lead its way against GBP but any worse result on the USD may lead to certain weakness in the process.
Now let us look at the technical view. The price is currently residing below 1.2850 with a daily close below the dynamic level of 20 EMA. The pair having a gap on the Monday open this week which was not recovered, the price is expected to push lower if a daily close below 1.2850 is found today. As the price remains below 1.3050 area, the bearish bias is expected to continue with target towards 1.2550 area in the future.
SUPPORT: 1.2550
RESISTANCE: 1.2850, 1.3050
BIAS: BEARISH
MOMENTUM: IMPULSIVE AND NON-VOLATILE
