GBP/USD Daily Forecast – U.S. Dollar Is Moving Lower Against British Pound

British Pound Tries To Gain Ground Against U.S. Dollar

GBP/USD is currently trying to settle back above 1.3780 while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle below the support level at 93.50. In case the U.S. Dollar Index manages to settle below this level, it will move towards the next support level at the 50 EMA at 93.40 which will be bullish for GBP/USD.

There are no important economic reports scheduled to be released in the U.S. and UK today so foreign exchange market traders will focus on general market sentiment and the developments in U.S. government bond markets.

The yield of 10-year Treasuries is currently trying to settle back above 1.65% after the significant pullback. In case this attempt is successful, the yield of 10-year Treasuries will move towards the recent highs near 1.70% which will be bullish for the American currency.

Technical Analysis

GBP/USD failed to settle below the support level at 1.3745 and is trying to get back above the resistance level at 1.3780. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If GBP/USD manages to settle above the resistance at 1.3780, it will get to the test of the next resistance level at 1.3800. A successful test of the resistance at 1.3800 will open the way to the test of the next resistance at 1.3835. If GBP/USD settles above this level, it will move towards the resistance at 1.3875.

On the support side, the nearest support level for GBP/USD is located at 1.3745. In case GBP/USD manages to settle below this level, it will gain additional downside momentum and move towards the next support level which is located at the 50 EMA at 1.3715. A successful test of the support at the 50 EMA will push GBP/USD towards the next support level at 1.3690.

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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