Fundamental Analysis of GBP/USD for August 8, 2018
GBP/USD has been quite bearish recently which lead the price to fall below 1.2950 area with a daily close. Ahead of the UK GDP and US CPI report this week, certain volatility is expected this pair whereas GBP is expected to take a certain lead in the process.
This week on Friday, UK GDP report is going to be published which is expected to decrease to 0.2% from the previous value of 0.3%, Manufacturing Production is also expected to decrease to 0.3% from the previous value of 0.4% but Prelim GDP is expected to increase to 0.4% from the previous value of 0.2%. Today there is no news or event on the GBP side to impact its momentum which is expected to keep a low profile throughout the day.
On the USD side, ahead of PPI and CPI report this week, today FOMC Member Barkin is going to speak about interest rate and monetary policy decision which is expected to have a neutral impact on the market and Crude Oil Inventories is expected to decrease to -2.8M from the previous figure of 3.8M.
As of the current scenario, both currencies in the pair is expecting high impact economic reports this week which may lead to definite trend momentum in the coming days. Though the expectations are quite mixed till now, an actual result of the economic reports is expected to push the price to a certain direction in the process where there are chances that GBP may struggle with the BREXIT effect and Trade War tensions in the coming days.
Now let us look at the technical view. The price is currently struggling below 1.2960 area which is expected to push higher as of Bullish Divergence emerging in the intraday charts of the pair. After the impulsive bearish pressure off the 1.32 area, the price is currently expected to push higher towards the dynamic level of 20 EMA which is resting at 1.3050 area from where the bearish trend is expected to continue to push further again in the coming days. As the price remains below 1.32, the bearish bias is expected to continue further.
RESISTANCE: 1.2960, 1.3200
MOMENTUM: CORRECTIVE and VOLATILE