GBPUSD has been quite volatile and corrective above the 1.3320 area which is expected to push downwards in the coming days. Though USD has been struggling to gain momentum over GBP recently, upcoming high-impact economic reports are expected to have a positive impact on further bearish gains in the pair.
Today GBP Average Earning Index report was published with a decrease of 2.5% as expected from the previous value of 2.6%; Claimant Count Change had a positive result decreasing to -7.7k from the previous figure of 31.2k which was expected to be at 11.3k, and Unemployment Rate remained unchanged at 4.2%. The mixed economic report results confused the market sentiment for a while now but currently bears are gaining momentum in the process.
On the other hand, today USD CPI report is going to be published which is expected to be unchanged at 0.2% and Core CPI report is also expected to be unchanged at 0.1%. Moreover, NFIB Small Business Index report published recently showed an increase to 107.8 from the previous figure of 104.8 which was expected to be at 105.2.
As of the current scenario, GBP reports have been quite indecisive today which lea to certain correction and volatility in the market whereas USD economic reports are also expected to be unchanged. The forecast with unchanged value led to certain indecision in the market by now but an increase in value with an actual result is expected to lead to further USD gains in the coming days.
Now let us look at the technical view. The price is currently being held by the dynamic level of 20 EMA which is expected to push the price much lower towards the 1.3050 support area in the future. The price has been quite non-volatile and bearish with the gains since last few months which is expected to continue pushing lower in the coming days. As the price remains below the 1.35 area with a daily close, further bearish pressure is expected in this pair.
The material has been provided by InstaForex Company – www.instaforex.com