GBP/USD Daily Forecast – British Pound Attempts To Rebound

·2 min read

GBP/USD Video 14.05.21.

Test Of Resistance At 1.4050

GBP/USD is currently trying to get back above the resistance at 1.4050 while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index is currently testing the nearest support level at 90.70. In case this test is successful, the U.S. Dollar Index will head towards the next support at 90.50 which will be bullish for GBP/USD.

There are no important economic reports scheduled to be released in the UK today so foreign exchange market traders will focus on the economic data from the U.S.

Analysts expect that Retail Sales increased by 1% month-over-month in April after growing by 9.8% in March. On a year-over-year basis, Retail Sales are forecast to grow by 30.5% as they were weak in April 2020 due to the pandemic.

Industrial Production is projected to grow by 1% month-over-month in April while Manufacturing Production is expected to increase by 0.4%.

Foreign exchange market traders will also have a chance to take a look at preliminary Consumer Sentiment data for May which is expected to show that Consumer Sentiment improved from 88.3 to 90.4.

Technical Analysis

GBP/USD is testing the nearest resistance level at 1.4050. In case this test is successful, GBP/USD will head towards the next resistance at 1.4080. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

If GBP/USD settles above the resistance at 1.4080, it will move towards the next resistance at 1.4120. A move above this level will open the way to the test of the resistance at 1.4150.

On the support side, the nearest support level for GBP/USD is located at 1.4020. In case GBP/USD declines below this support level, it will head towards the next support at 1.4000.

A move below 1.4000 will push GBP/USD towards the support at 1.3980. The 20 EMA is in the nearby, so GBP/USD will likely get material support near 1.3980.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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