30.01.2018 06:53 AM
Fundamental Analysis of GBP/USD for January 30, 2018

GBP/USD is currently showing some bearish pressure after bouncing off the 1.4350 resistance area recently with a daily close. GBP has been the dominant currency in the pair having positive economic reports which helped the currency to gain impulsive momentum over USD during its struggling period. Ahead of the upcoming high impact USD economic reports, GBP has already lost significant grounds which are expected to be a pullback before the long bullish run in the future. Today, GBP Net Lending to Individuals report is going to be published which is expected to decrease to 4.8B from the previous figure of 4.9B, M4 Money Supply is expected to increase to 0.2% from the previous value of 0.1%, and Mortgage Approvals is expected to increase to 66k from the previous figure of 65k. On the other hand, today, USD CB Consumer Confidence report is going to be published which is expected to increase to 123.2 from the previous figure of 122.1, and S&P C/S Composite 20-HPI report is expected to decrease to 6.3% from the previous value of 6.4%. As of the current scenario, USD is expected to gain momentum against GBP having mixed economic forecast for the upcoming reports and ahead of the high impact economic reports on Friday, USD is expected to gain momentum for a certain period before GBP pushes the price higher in the long-term.

Now let us look at the technical view. The price is expected to retrace towards the 1.3850 – 1.40 support area before it pushes higher towards the 1.45-1.46 resistance area in the coming days. After breaking above the 1.3850 area, this retracement was the most expected from where the price has higher probability of bouncing up. As the price remains above 1.3850, the bullish bias is expected to continue further.

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