GBP/USD Daily Forecast – Attempt To Settle Above 1.3270

GBP/USD Video 20.11.20.

British Pound Continues To Move Higher

GBP/USD is currently trying to settle above the resistance at 1.3270 as the U.S. dollar continues to lose ground against a broad basket of currencies.

Yesterday, the U.S. Dollar Index made an attempt to settle above the resistance at 92.50 but failed to gain sufficient upside momentum. Today, it is moving towards the nearest support level at 92.10. If the U.S. Dollar Index settles below the support at 92.10, it will gain additional downside momentum and head towards the next support at 91.75 which will be bullish for GBP/USD.

Today, foreign exchange market traders will focus on the upcoming UK Retail Sales report. Analysts expect that Retail Sales remained unchanged on a month-over-month basis in October after growing by 1.5% in September. On a year-over-year basis, Retail Sales are projected to increase by 4.2%.

In addition to UK Retail Sales data, traders will continue to follow Brexit news. Currently, the market believes that UK and EU will be able to negotiate a compromise deal so the British pound continues to move higher. If the deal is not reached, I’d expect a strong sell-off in GBP/USD.

Technical Analysis

GBP/USD is currently testing the nearest resistance level at 1.3270. This resistance level has already been tested several times in recent trading sessions, and GBP/USD failed to gain sufficient upside momentum to settle above 1.3270.

In case GBP/USD manages to settle above this level, it will gain additional upside momentum and head towards the next resistance at 1.3325. A successful test of the resistance at 1.3325 will push GBP/USD towards the next resistance level at 1.3400. This move may be fast since there are no important levels between 1.3325 and 1.3400.

On the support side, the nearest support level for GBP/USD is located at 1.3210. If GBP/USD declines below this level, it will head towards the next support level at 1.3180. In case GBP/USD moves below the support at 1.3180, it will get to the test of the next support level which is located at the 20 EMA at 1.3165.

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