Vladimir Zernov
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GBP/USD Video 03.06.21.

British Pound Is Under Pressure Against U.S. Dollar

GBP/USD is currently testing the support level at 1.4150 while the U.S. dollar is gaining ground against a broad basket of currencies.

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The U.S. Dollar Index has recently managed to get back above the resistance at the 90 level and is trying to develop additional upside momentum. The next resistance level is located at the 20 EMA at 90.20. In case the U.S. Dollar Index gets to the test of this level, GBP/USD will find itself under more pressure.

Today, foreign exchange market traders will have a chance to take a look at the final reading of UK Services PMI report for May. Analysts expect that Services PMI improved from 61 in April to 61.8 in May.

Later, traders’ focus will shift to economic data from the U.S. Services PMI is projected to grow from 64.7 in April to 70.1 in May. ADP Employment Change report is expected to show that private businesses hired 650,000 workers in May. Analysts expect that Initial Jobless Claims report will indicate that 390,000 Americans filed for unemployment benefits in a week.


Technical Analysis

GBP/USD continues its attempts to settle below the support at 1.4150. If GBP/USD declines below this level, it will head towards the next support level which is located at the 20 EMA at 1.4130.

A successful test of the support at the 20 EMA will open the way to the test of the next support level at 1.4100. A move below this level will push GBP/USD towards the next support at 1.4080.

On the upside, GBP/USD needs to stay above 1.4150 to have a chance to develop upside momentum in the near term. If GBP/USD manages to stay above this level, it will move towards the resistance at 1.4180.

A move above this level will push GBP/USD towards the resistance which is located at 1.4200. In case GBP/USD settles above 1.4200, it will head towards the next resistance at 1.4240.

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

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