GBP/USD has been in a bearish pressure since the bounce off the resistance area of 1.3000-50. GBP has been quite weaker recently and after the strong NFP news on Friday, USD has gained some strength. On the GBP side, today MPC Member Haldane and Broadbent is going to speak about key interest rates and future monetary policies. As the Brexit negotiation is still in line and resignation of the UK PM May is said to be the most impactful reason for the GBP weakening. On the USD side, today JOLTS Job Opening report is going to be published which is expected to decrease to 5.98M from previous value of 6.04M, Final Wholesale Inventories report is expected to be unchanged at 0.3% and FOMC Member Brainard will speak today about nation’s key interest rates and future monetary policies. As the number of economic events is going to take place today on both currencies of the pair a good amount of volatility is expected to hit the market today but USD is expected to have the upper hand over the GBP and gain further in the coming days.
Now let us look at the technical view, the price has been quite bearish recently which is expected to continue further towards 1.2750-1.2800 support area. The price is currently being held by the dynamic support level of 20 EMA but the price is expected to break below the dynamic support and reach the 1.2750-1.2800 support area in the coming days. If the price bounces off the support area we will be looking forward to buying with a target towards 1.3370 resistance and if the price breaks below the support level of 1.2750 with a daily close then we will be looking forward to selling with a target towards 1.2550 support level.
The material has been provided by InstaForex Company – www.instaforex.com