Amidst early week volatility, GBP/USD initially tested 1.2650 before reversing course and closing positively on Monday. However, recent movement has brought the pair into a supply area, hinting at a possible reversal and continuation of its bearish trajectory.
In the upcoming economic calendar, focus shifts to the release of Durable Goods Orders for February in the US. Forecasts predict a 1.3% rise following January's 6.2% contraction. Should the data disappoint, it may weaken the USD in the immediate aftermath. Conversely, a stronger-than-expected increase could bolster the currency. Nonetheless, the impact of this data is likely to be short-lived.
Traders are closely monitoring these developments, with anticipation building for a potential bearish setup post the Durable Goods news.
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Following our analysis, GBP/USD has initiated a bearish momentum.
Today, the UK's FTSE 100 Index is trading slightly lower, while US stock index futures are up between 0.3% and 0.4%.
There are no significant data releases expected from the US economic calendar that could impact the valuation of the USD and influence the pair's movement.
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