GBP/USD has been quite impulsive with the bearish pressure recently which lead the price to reside below 1.3320 area currently. After the recent bullish pullback in the bearish trend, the certain bearish pressure being evolved in the market currently is expected to push the price much lower in the coming days.
Recently GBP has been quite positive with the outcome of the economic reports which was not sufficient to sustain the bullish momentum against the recent USD sentiment being supported by the recent positive economic reports published on Friday. Today GBP Services PMI report is going to be published which is expected to have a slight increase to 52.9 from the previous figure of 52.8 and MPC Member Cunliffe is going to speak about the nation's key interest rate and upcoming monetary policies which are expected to have neutral impact on the gains of GBP in the process.
On the other hand, after the recent positive high impact economic reports published on Friday, today USD Final Services PMI report is going to be published which is expected to be unchanged at 55.7, ISM Non-Manufacturing PMI report is expected to increase to 57.9 from the previous figure of 56.8, JOLTS Job Opening is expected to decrease to 6.49M from the previous figure of 6.55M and IBD/TIPP Economic Optimism is expected to increase to 54.2 from the previous figure of 53.6.
As of the current scenario, USD is quite optimistic with the upcoming economic reports results after the recent positive employment change reports got published whereas GBP economic reports are expected to have little impact on the further gains. To sum up, USD is expected to continue its dominance over GBP in the coming days which is expected to push the price much lower in future.
Now let us look at the technical view. The price has been quite bullish with the recent price action which has been observed as the outcome of bullish divergence formed earlier in the chart. Recently, in the intraday chart, certain bearish divergence was spotted just before the recent bearish impulsive pressure which took the price below 1.3320 area and expected to lead to further downward momentum with target towards 1.3050 support area in the coming days. As the price remains below 1.34 with a daily close, the bearish bias is expected to continue further.