13.02.201808:35 Forex Analysis & Reviews: Fundamental Analysis of GBP/USD for February 13, 2018

GBP/USD has recently broken the support area of 1.3850-1.3950 which has turned as a resistance area now. The market flow has been quite slow and corrective after breaking below the support and is expected to proceed lower in the coming days. GBP having unchanged after Official Bank Rates and Hawkish Bank of England statement failed to gain the momentum it needed to counter against the impulsive bearish move in the pair recently. Today, GBP CPI report is going to be published which is expected to decrease to 2.9% from the previous value of 3.0%, PPI Input is expected to increase to 0.7% from the previous value of 0.1%, RPI report is expected to show an unchanged value of 4.1%, Core CPI is expected to increase to 2.6% from the previous value of 2.5%, HPI report is expected to decrease to 4.9% from the previous value of 5.1%, and PPI Output is also expected to decrease to 0.2% from the previous value of 0.4%. The economic reports are expected to have mixed outcome which is expected to lead to further correction and volatility in the market ahead of the high influencing economic reports of USD to be published this week. On the other hand, today, USD NFIB Small Business Index report is going to be published which is expected to increase to 106.2 from the previous figure of 104.9, and FOMC Member Mester is going to speak about the monetary policies and the upcoming interest rate decision which is more likely to have an increase on March 2018. As of the current scenario, USD is expected to be the dominant currency in the pair having GBP struggling with the mixed economic reports and market sentiment not favoring the GBP gains despite having positive economic reports and events recently.

Now let us look at the technical view. The price is currently residing at the edge of the 1.3850-1.3950 resistance area from where the price is expected to proceed lower towards the 1.36 support area. The price is being held by the dynamic level of 20 EMA as well which also increased the probability of the upcoming bearish pressure in the pair. As the price remains below the 1.3850-1.3950 resistance area, the bearish bias is expected to continue further.