GBP/USD Daily Forecast – British Pound Attempts To Gain Ground Against U.S. Dollar

British Pound Tries To Rebound Against U.S. Dollar

GBP/USD is currently trying to get back above 1.3745 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index remains stuck in a range between the 20 EMA at 93.80 and the resistance level at 94. In case the U.S. Dollar Index declines below the 20 EMA, it will gain downside momentum and move towards the support level at 93.50 which will be bullish for GBP/USD.

Today, foreign exchange market traders will focus on the economic data from U.S. Analysts expect that third-quarter GDP Growth Rate report will indicate that GDP increased by 2.7% on a quarter-over-quarter basis.

Initial Jobless Claims report is projected to show that 290,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to decline from 2.48 million to 2.42 million. Pending Home Sales report is expected to show that Pending Home Sales remained unchanged on a month-over-month basis after growing by 8.1% in August. On a year-over-year basis, Pending Home Sales are projected to decline by 7%.

Technical Analysis

GBP/USD failed to settle below the support at the 50 EMA at 1.3720 and is trying to get back above the resistance level at 1.3745. In case this attempt is successful, GBP/USD will move towards the next resistance level which is located at 1.3780.

A move above the resistance at 1.3780 will open the way to the test of the resistance at 1.3800. In case GBP/USD gets above this level, it will continue its rebound and head towards the significant resistance level at 1.3835.

On the support side, GBP/USD needs to settle below the support at the 50 EMA at 1.3720 to have a chance to develop additional downside momentum in the near term. The next support level for GBP/USD is located at 1.3710. In case GBP/USD manages to get below this level, it will head towards the next support level at 1.3690.

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