GBP/USD has been quite volatile and corrective with the recent bullish pressure leading the price towards 1.2700-50 resistance area in the process. As of the Brexit impact, GBP has been struggling against USD earlier but recently GBP pushed to gain momentum which is currently assumed as the trend pullback along the way.

Boxing Day is celebrated in the UK, so there are no economic reports or events to be held to impact the gains of GBP in the process. On Friday the UK High Street Lending report is going to be published which is expected to decrease to 38.9k from the previous figure of 39.7k. The worse than expected economic result is expected to lead to certain weakness in the currency ahead of the UK reports to be published next month.

On the USD side, today the yearly S&P C/S Composite 20-HPI is expected to decrease to 4.8% from the previous value of 5.1% and Richmond Manufacturing Index is expected to increase to 16 from the previous figure of 14. Additionally, tomorrow US CB Consumer Confidence report is going to be published which is expected to decrease to 133.0 from the previous figure of 135.7.

As of the current scenario, both US and UK upcoming economic reports are expected to be quite dovish with the outcome whereas US having certain optimism about the recent rate hike may lead the market sentiment to be biased towards USD ahead of NFP next week. Though the market is still quite low on liquidity and indecisive, USD has greater probability to push stronger than GBP to maintain the overall bearish trend in the process.

Now let us look at the technical view. The price is currently residing at the edge of 1.2700-50 resistance area having dynamic level of 20 EMA holding it. The price is currently expected to push lower towards 1.2500 area as it remains below 1.2750 with a daily close. As of the recent correction and volatility at the edge of 1.2700-50 area, the bearish momentum is expected to take over in the process.

SUPPORT: 1.2500-50

RESISTANCE: 1.2700-50, 1.2800

BIAS: BEARISH

MOMENTUM: VOLATILE