GBP/USD has been quite volatile and corrective recently forming a squeeze towards the resistance level of 1.3610. GBP has been the dominant currency in the pair but recently USD has been quite successful with its pressure to restrict further bullish momentum in this pair. This week, GBP has been quite negative with the economic reports which affected the impulsive bullish pressure in the pair. Today, GBP Manufacturing Production report is going to be published which is expected to increase to 0.3% from the previous value of 0.1%, Good Trade Balance report is expected to show a slight increase in deficit to -10.9B from the previous figure of -10.8B, Construction Output is expected to increase to 0.7% from the previous negative value of -1.7%, Industrial Production is also expected to increase to 0.4% from the previous value of 0.0% and NIESR GDP Estimate is expected to show an increase from the previous value of 0.5%. On the other hand, despite worse economic reports recently, USD managed to continue its momentum against GBP signaling further bearish pressure in the short term. Today, US Import Price report is going to be published which is expected to decrease to 0.4% from the previous value of 0.7%, Final Wholesale Inventories report is expected to be unchanged at 0.7%, and Crude Oil Inventories is expected to show less deficit at -3.9M from the previous figure of -7.4M. As for the current scenario, US economic reports are forecasted to have mixed results whereas GBP seemed quite optimistic amid the upbeat economic reports today. A good amount of volatility is expected to hit the market today whereas USD is expected to gain momentum over GBP, if US economic reports come better than expected today or GBP fails to meet the expected readings.

Now let us look at the technical chart. The price is currently residing inside the corrective volatile structure just below the resistance level of 1.3610. As for the current scenario, price is expected to move down towards the trend line support around 1.3450 area before showing some bullish intervention along the way. As the price remains above 1.33 support area, the bullish bias is expected to continue which might result in breaking above 1.3610 with a target towards 1.3850.