GBP/USD Daily Forecast – Another Test Of Support At 1.3280

British Pound Is Under Pressure Against U.S. Dollar

GBP/USD is currently trying to settle below the support level at 1.3280 while U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index settled above the 96 level and is testing the next resistance level at 96.25. In case this test is successful, the U.S. Dollar Index will move towards 96.50 which will be bearish for GBP/USD.

Today, UK will release the final reading of UK Services PMI report which is expected to show that Services PMI declined from 59.1 in October to 58.6 in November.

In the U.S., foreign exchange market traders will focus on job market reports. Analysts expect that Non Farm Payrolls report will show that the U.S. economy added 550,000 jobs in November. Unemployment Rate is projected to decline from 4.6% in October to 4.5% in November.

Traders will also have a chance to take a look at the final reading of U.S. Services PMI report. Analysts forecast that U.S. Services PMI declined from 58.7 in Ocotber to 57 in November.

Technical Analysis

GBP/USD settled below 1.3300 and is testing the support level at 1.3280. In case this test is successful, GBP/USD will head towards the support at 1.3250.

A move below 1.3250 will open the way to the test of the support at 1.3230. In case GBP/USD declines below the support level at 1.3230, it will head towards the next support level which is located at 1.3200.

On the upside, the nearest significant resistance level for GBP/USD is located at 1.3310. GBP/USD made several attempts to settle above this level in recent trading sessions, but these attempts yielded no results.

In case GBP/USD manages to settle back above the resistance level at 1.3310, it will move towards the next resistance at 1.3350. A move above this resistance level will push GBP/USD towards the next resistance which is located near the 20 EMA at 1.3375.

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