GBP/USD has been quite impulsive trading in the bearish bias today. At present, the price is holding below 1.32 area after retesting the support of 1.3320 area as resistance with a daily close. Ahead of the UK Official Bank rate report and Monetary Policy summary this week, GBP is losing ground that explains the weakness of the currency.
GBP has been struggling amid mixed economic reports released in the recent weeks, in particular downbeat Manufacturing Production, unchanged Average Earning Index, and Unemployment Rate reports. Today, the UK CBI Industrial Order Expectation report is going to be published which is expected to increase to 1 from the previous negative figure of -3. Moreover, tomorrow the Official Bank Rate report is going to be published which is expected to be unchanged at 0.50%.
On the other hand, USD has been quite positive amid recent economic reports and events which help the currency to gain further momentum over GBP in the process. Today, FED Chair Powell is going to speak about the interest rate decisions and monetary policy. His speech at the symposium in Sintra is expected to inject certain volatility in the market though the expectation is quite optimistic for USD for the future.
As for the current scenario, USD is expected to gain further momentum over GBP despite the pending Official Bank Rate report which is due today. GBP/USD is to trade with higher volatility today, but GBP would fail to dominate in the pair and is unlikely to gain counter momentum in the process.
Now let us look at the technical view. The price is currently quite bearish after rejecting off the dynamic level of 20 EMA and breaking below 1.3320 area with a daily close. As for the current structure the price is expected to push lower towards 1.3050 area before any bullish intervention along the way. As the price remains below 1.3320 area with a daily close, the bearish bias is expected to continue further.