GBP/USD has been quite impulsive with recent bullish gains. The pair has been trading in a non-volatile manner with the bullish momentum after the recent bounce off the 1.2850 area with a daily close. Ahead of the high impact economic reports from the UK this week, USD has been quite weak in comparison that is expected to encourage further upward momentum in the pair.
Recently UK CB Leading Index report was published unchanged at -0.2% which did not quite affect GBP gains in the process. Though today the economic calendar contains no economic reports from the UK, tomorrow UK CPI report is going to be published which is expected to decrease to 2.4% from the previous value of 2.5%. On Thursday GBP Retail Sales report is going to be published which is also expected to decrease to -0.1% from the previous value of 0.7%.
On the other hand, today US NAHB Housing Market Index report is going to be published which is expected to decrease to 66 from the previous figure of 67. Moreover, tomorrow US Building Permits report is going to be published which is expected to be unchanged at 1.31M and Housing Starts is expected to increase to 1.24M from the previous figure of 1.17M
Meanwhile, the upcoming economic reports are likely to dent GBP strength, whereas reports from the US are also expected to have mixed results. Though GBP has been the dominant currency in the pair, certain negative outcome on the upcoming reports will inject volatility and certain USD gains against the bullish pressure in the process.
Now let us look at the technical view. The price is currently heading towards 1.3200 area. If broken above with a daily close, further upward momentum is expected with a target towards 1.3350. The price has been quite impulsive with recent bullish gains which successfully countered the previous bearish momentum. As the price remains above 1.3050 area, the bullish bias is expected to continue further.
SUPPORT: 1.3050
RESISTANCE: 1.3200, 1.3350
BIAS: BULLISH
MOMENTUM: IMPULSIVE and NON-VOLATILE
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