GBP/USD Daily Forecast – AstraZeneca Vaccine Problems Put Pressure On British Pound

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Published: Apr 9, 2021, 06:36 UTC

GBP/USD settled below 1.3745 and is trying to settle below the next support level at 1.3710.

British Pound Is Under Pressure Against U.S. Dollar

GBP/USD is currently testing the support at 1.3710 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index failed to settle below the support at the 92 level and rebounded towards the resistance at 92.15. In case the U.S. Dollar Index manages to settle above this level, it will head towards the resistance at the 20 EMA at 92.30 which will be bearish for GBP/USD.

Yesterday, U.S. reported that Initial Jobless Claims increased from 728,000 to 744,000 while Continuing Jobless Claims declined from 3.75 million to 3.73 million. Both reports were worse than analyst expectations.

Today, foreign exchange market traders will focus on dynamics of Treasury yields. Currently, Treasury yields are moving higher, which is bullish for the U.S. dollar. The yield of 10-year Treasuries is trying to settle back above the 20 EMA at 1.635%. In case this attempt is successful, it may gain additional upside momentum and provide more support to the American currency.

Traders will also keep an eye on AstraZeneca vaccine problems. It looks that Britain’s reliance on this vaccine served as a bearish catalyst for the pound in recent trading sessions.

Technical Analysis

GBP/USD is currently trying to settle below the support at 1.3710. In case this attempt is successful, GBP/USD will head towards the next support level which is located at 1.3665.

A successful test of the support at 1.3665 will open the way to the test of the next support at 1.3625. In case GBP/USD declines below this level, it will move towards the support at 1.3575.

On the upside, the nearest resistance for GBP/USD is located at 1.3745. This resistance level has been recently tested and proved its strength. If GBP/USD manages to settle above this level, it will head towards the next resistance at 1.3780. A move above this level will push GBP/USD towards the resistance at 1.3800.

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

About the Author

Vladimir Zernovauthor

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.