GBP/USD has recently rejected off the 1.3850-1.3950 area with a daily close which is currently expected to proceed higher in the coming days. USD has been quite dominant this week over GBP, which was a result of the positive Employment Change report published without any change in Unemployment Rate. The positive Employment Change report result empowered the USD to gain momentum for a certain period whereas currently GBP is expected to gain momentum. Ahead of the Official Bank Rate report which is expected to be unchanged at 0.50% and Inflation report to be published tomorrow, today GBP Halifax HPI report is going to be published which is expected to increase to 0.2% from the previous negative value of -0.6%. On the other hand, today USD FOMC Member Dudley is going to speak about the upcoming monetary policies and interest rate decision which is expected to increase in March 2018. Additionally, today USD Crude Oil Inventories report is going to be published as well which is expected to decrease to 3.2M from the previous figure of 6.8M. As of the current scenario, ahead of the GBP high impact economic reports to be published this week, a good amount of volatility is expected to hit the market and if GBP economic reports results to positive which is more likely, GBP is expected to gain impulsive momentum over USD in the coming days.
Now let us look at the technical view. After the recent bearish move off the 1.4250 resistance area having a Bearish Divergence, the price is currently residing above the dynamic level of 20 EMA and support area of 1.3850-1.3950. As the price remains above 1.3850-1.3950 area and dynamic level of 20 EMA with a daily close, the bullish bias is expected to continue to push the price higher towards 1.4250 in the coming days.
The material has been provided by InstaForex Company – www.instaforex.com