GBP/USD has been quite impulsive amid the recent bearish bias. The price is expected to maintain bearish momentum in the coming days. Ahead of the crucial event in the UK and macroeconomic reports from the US throughout the week, the pair is set to trade with higher volatility.
The UK presented mostly upbeat economic reports recently. However, GBP could not quite gain momentum against USD that indicates bearish market sentiment on GBP, while also leading to greater gains on the USD side. Today the UK CBI Industrial Order Expectations report is going to be published which is expected to be unchanged at -1 and MPC Member Haldane is going to speak about the key interest rates and the plans on monetary policy. Moreover, Bank of England's Governor Carney is also due to speak today about the Brexit impact on the domestic economy which may lead to certain volatility in the market.
On the other hand, USD may struggle for gains on the back of the recent argument between the FED and President Trump about a pace of monetary tightening. The clash may lead to certain immediate gains but in long term it is expected to slow down the economic growth in a multiple way. The US is due to publish Core Durable Goods Orders and flash GDP reports later this week. Today Richmond Manufacturing Index report is going to be published which is expected to decrease to 25 from the previous figure of 29 and FOMC Member Bostic is going to speak today about the Fed's plans on the pace of rate hikes. His speech is expected to be hawkish.
Meanwhile, the pair is expected to be quite volatile this week on the back of the loaded economic calendar for both the US and the UK. Though GBP has been struggling to maintain momentum, certain bullish pressure is not ruled out in case of solid economic data. Otherwise, USD is expected to continue its impulsive momentum in the coming days.
Now let us look at the technical view. The price is currently residing below 1.3000-50 area from where certain retracement towards the area is expected before the price moves lower towards 1.2850 and later towards 1.2700 area. The price is currently residing at the edge of Kumo Cloud support which is probably going to be broken with a retest before moving lower. As the price remains below 1.3050 area, the bearish bias is expected to continue.
SUPPORT: 1.2700, 1.2850
RESISTANCE: 1.3000-50, 1.3200
BIAS: BEARISH
MOMENTUM: IMPULSIVE and VOLATILE
