GBP/USD Daily Forecast – British Pound Attempts To Rebound After Sell-Off

British Pound Gains Some Ground Against U.S. Dollar

GBP/USD is currently trying to settle back above 1.3425 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle above the 95 level. In case the U.S. Dollar Index manages to settle above this level, it will move towards the resistance at 95.20 which will be bearish for GBP/USD.

UK has recently released the third-quarter GDP Growth Rate report which indicated that GDP increased by 1.3% quarter-over-quarter compared to analyst consensus which called for growth of 1.5%.

Foreign exchange market traders also had a chance to take a look at Industrial Production and Manufacturing Production reports from UK. Industrial Production declined by 0.4% month-over-month in September compared to analyst consensus which called for growth of 0.2%. On a year-over-year basis, Industrial Production increased by 2.9%. Manufacturing Production decreased by 0.1% month-over-month compared to analyst consensus of 0.2%.

Technical Analysis

GBP/USD received support near 1.3400 and is trying to get above the nearest resistance level at 1.3425. In case GBP/USD manages to settle above this level, it will gain additional upside momentum and head towards the next resistance which is located at 1.3450.

A successful test of the resistance at 1.3450 will open the way to the test of the resistance at 1.3470. If GBP/USD settles above this level, it will move towards the next resistance level at 1.3500.

On the support side, GBP/USD needs to settle below 1.3400 to have a chance to develop downside momentum in the near term. RSI remains in the moderate territory, and there is plenty of room to gain additional momentum in case the right catalysts emerge.

If GBP/USD settles below 1.3400, it will move towards the next support level which is located at 1.3375. A move below the support at 1.3375 will push GBP/USD towards the support level at 1.3350.

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