GBP/USD Daily Forecast – British Pound Is Moving Lower Against U.S. Dollar
U.S. Dollar Gains Ground Against British Pound
GBP/USD is currently trying to settle back below 1.3690 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index managed to get above the resistance at 93.40 and is moving towards the next resistance level which is located at the yearly highs at 93.75. 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 focus on economic data from U.S. CB Consumer Confidence report is projected to show that Consumer Confidence increased from 113.8 in August to 114.5 in September. Case-Shiller Home Price Index report is projected to show that home prices grew by 20% year-over-year in July.
Traders will also keep an eye on the developments in U.S. government bond markets. Yesterday, the yield of 10-year Treasuries made an attempt to settle above the psychologically important 1.50% level but failed to develop sufficient upside momentum. In case the yield of 10-year Treasuries manages to settle above this level, it will move towards the resistance at 1.54% which will be bullish for the U.S. dollar.
GBP/USD failed to settle above the resistance level at 1.3710 and moved below the support at 1.3690. In case GBP/USD manages to settle below 1.3690, it will head towards the next support level at 1.3665. This support level has been tested several times in recent trading sessions and proved its strength.
If GBP/USD declines below 1.3665, it will move towards the support at 1.3635. A successful test of this level will open the way to the test of the support at 1.3600.
On the upside, GBP/USD needs to settle above 1.3710 to have a chance to develop upside momentum in the near term. The next resistance level is located at the 20 EMA at 1.3730. If GBP/USD settles above the 20 EMA, it will get to the test of the next resistance level at 1.3745.
For a look at all of today’s economic events, check out our economic calendar.