GBP/USD has been quite non-volatile within the bearish bias recently which led the price to reside below 1.3300 area. Ahead of the upcoming high impact economic reports from the US, certain bearish impulsive pressure indicates the definite trend pressure in the pair.
Today, the UK BRC Shop Price Index report was published with a greater deficit to -1.1% from the previous value of -1.0%. The worse economic report did not quite help USD to extend its gains whereas the volatility increased at an alarming rate today.
On the USD side, today Prelim GDP report is going to be published which is expected to be unchanged at 2.3%, Goods Trade Balance report is expected to increase in deficit to -71.2B from the previous figure of -68.3B, Prelim GDP Price Index report is also expected to be unchanged at 2.0%, and Prelim Wholesale Inventories report is expected to increase to 0.4% from the previous value of 0.3%.
As for the current scenario, forecasts for US economic reports today are quite indecisive though USD is expected to have the upper hand over GBP in the coming days. In the recent meetings of Bank of England, the policies taken are expected to have their impact in the long run without any immediate impact on the current market situation.
Now let us look at the technical view. The price is currently showing certain bullish rejection in the process which is expected to push lower towards 1.3050 area in the coming days. Though certain Bullish Divergence is being observed in the process but the bullish pressure is expected to be push higher after price bounces off the 1.3050 area in the future. As the price remains below 1.33 with a daily close, the impulsive bearish pressure is expected to continue.