The key fundamental drivers of GBP/USD for today:
Ahead of the main FOMC show in the US today we are also keen on UK unemployment which would likely fall further again and average weekly earnings are also expected to rise to 2.1% YoY.
Fed's monetary policy statement and interest decision should be closely viewed in addition.
On flip side, the BOE's last set of minutes will display how they are reading exactly those kinds of trends; and in Europe we will see the final May CPI reading (expected unchanged at 0.2% MoM, 0.3% YoY, and 0.9% YoY core.)
We believe current forecasted numbers from previous prints of UK unemployment rate, average earning index and official bank rates votes are little on higher side for no rationale.
Hence, this over-expectation may cause negatively on sterling.
Technical Glimpse: (GBP/USD)
We think bulls have been exhausted and losing interest in building portfolios or may be even in the moods of halting the rallies for sometime as we observe volumes of previous rallies are not substantiated.
On daily charts stochastic and RSI oscillators are conducive for aggressive bulls as %D line trending at 97 & %K line at 96 levels which is to be deemed as selling pressure is mounting a lot.
Although RSI (14) suspiciously hangs back near 65 levels, 1.5489 on upside cannot be disregarded.
However today's closing should be closely watched which would set the tone for next stage for both bulls and bears.
If it manages to break below 1.5647 levels or atleast somewhere close that level may be the crucial thing for bears.
