GBP/USD Continues To Move Higher After Yesterday’s Strong Rebound

Key Insights

• The U.S. Dollar Index remains under pressure after an unsuccessful attempt to settle above 100.50.
• Today, traders will focus on Retail Sales and Consumer Sentiment reports from the U.S. 
• A move above 1.3140 will push GBP/USD towards the resistance at 1.3175.

British Pound Is Gaining Ground Against U.S. Dollar

GBP/USD is currently trying to settle above the resistance at 1.3140, while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index managed to get below the support at 99.75 and is moving towards the next support level at 99.45. In case the U.S. Dollar Index gets to the test of this level, GBP/USD will get more support.

Today, foreign exchange market traders will focus on the economic data from the U.S. Analysts expect that Retail Sales increased by 0.6% month-over-month in March. On a year-over-year basis, Retail Sales are expected to grow by 11%.

Initial Jobless Claims report is projected to show that 171,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to decline from 1.52 million to 1.5 million.

Traders will also have a chance to take a look at the preliminary reading of the Michigan Consumer Sentiment report for April. The report is expected to show that Consumer Sentiment declined from 59.4 in March to 59 in April.

Technical Analysis

 

GBP/USD is testing the resistance at 1.3140. In case this test is successful, GBP/USD will move towards the next resistance level, which is located at 1.3175.

A move above the resistance at 1.3175 will push GBP/USD towards the next resistance at the 50 EMA at 1.3200. In case GBP/USD manages to settle above the 50 EMA, it will head towards the resistance at 1.3230.

On the support side, the previous resistance near the 20 EMA at 1.3110 will serve as the first support level for GBP/USD. In case GBP/USD declines below the 20 EMA, it will head towards the support at 1.3080.

A successful test of the support at 1.3080 will push GBP/USD towards the support at 1.3050. If GBP/USD gets below 1.3050, it will move towards the support at 1.3030.

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