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GBP/USD Daily Forecast – Another Test Of Support At 1.3665

By:
Vladimir Zernov
Published: Sep 27, 2021, 06:48 UTC

GBP/USD managed to settle below 1.3690 and is testing the next support level at 1.3665.

GBP/USD

In this article:

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

GBP/USD continues its attempts to settle below the support at 1.3665 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index is currently stuck near 93.30. The nearest resistance level for the U.S. Dollar Index is located at 93.40. In case the U.S. Dollar Index settles above this level, it will gain additional upside momentum and move towards yearly highs near 93.75 which will be bearish 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 Durable Goods Orders report from the U.S. Analysts expect that Durable Goods Orders increased by 0.7% month-over-month in August after declining by 0.1% in July.

Traders will also keep an eye on the developments in U.S. government bond markets as Treasury yields have settled near multi-week highs. Currently, the yield of 10-year Treasuries is trying to settle above 1.45%. In case this attempt is successful, it will continue to move towards the 1.50% level which will provide more support to the American currency.

Technical Analysis

gbp usd september 27 2021

GBP/USD settled below 1.3690 and is testing the next support level which is located at 1.3665. This support level has already been tested several times and proved its strength.

In case GBP/USD manages to settle below 1.3665, it will head towards the next support level at 1.3635. A move below this level will push GBP/USD towards the support at 1.3600. If GBP/USD gets below 1.3600, it will move towards the support at 1.3575.

On the upside, the previous support level at 1.3690 will serve as the first resistance level for GBP/USD. In case GBP/USD manages to settle above this level, it will head towards the resistance at 1.3710. A successful test of the resistance level at 1.3710 will open the way to the test of the next resistance which is located at the 20 EMA at 1.3730.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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