GBP/USD Daily Forecast – Another Test Of Resistance At 1.3180

GBP/USD Video 10.11.20.

British Pound Tries To Move Higher Against U.S. Dollar

GBP/USD continues its attempts to settle above the resistance at 1.3180 while the U.S. dollar is losing ground against a broad basket of currencies.

Yesterday, the U.S. Dollar Index received strong support near 92.10 and managed to settle above 92.50. At one point, the U.S. Dollar Index tried to get to the test of the resistance at the 93 level but failed to gain sufficient momentum and pulled back.

If the pullback continues and the U.S. Dollar Index gets back below the support at 92.50, GBP/USD will have good chances to develop additional upside momentum.

Today, the UK will provide Unemployment Rate report for September and Claimant Count Change report for October. Analysts expect that Unemployment Rate increased from 4.5% to 4.8% as the coronavirus crisis continued to put pressure on the job market. Claimant Count Change report is projected to show that the number of people who claimed unemployment benefits increased by 50,000 in October.

Technical Analysis

GBP/USD faced strong resistance near 1.3180 but tries to settle above this level. In order to continue its upside move, GBP/USD will have to get above the recent highs near 1.3210.

If GBP/USD settles above 1.3210, it will likely gain additional upside momentum and head towards the next resistance level at 1.3270. RSI is in the moderate territory so there is plenty of room to gain momentum in case the right catalysts emerge.

A successful test of the resistance at 1.3270 will open the way to the next resistance level at 1.3325. There are no material levels between 1.3270 and 1.3325 so this move may be fast.

On the support side, the first support level for GBP/USD is located at 1.3140. Yesterday, GBP/USD made an attempt to settle below this level but this attempt yielded no results.

If GBP/USD settles below 1.3140, it will move ttowards the next support level which has emerged near 1.3100. A move below 1.3100 will push GBP/USD towards the next support at 1.3070. The 20 EMA is in the nearby, so GBP/USD will likely receive material support near 1.3070.

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