GBP/USD Daily Forecast – British Pound Lacks Momentum At The Start Of The Week

British Pound Is Mostly Flat Against U.S. Dollar

GBP/USD is currently trying to settle back above 1.3900 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index managed to settle above the 92 level and continues its attempts to settle above the next resistance at 92.15. In case the U.S. Dollar Index gets above this level, it will move towards the resistance at the 20 EMA at 92.30 which will be bearish for GBP/USD.

Today, foreign exchange market traders will have a chance to take a look at the final reading of UK Manufacturing PMI report for July. Analysts expect that UK Manufacturing PMI declined from 63.9 in June to 60.4 in July.

In the U.S., Manufacturing PMI is projected to increase from 62.1 in June to 63.1 in July. Traders will also pay attention to ISM Manufacturing PMI report which is projected to show that ISM Manufacturing PMI increased from 60.6 in June to 60.9 in July.

Technical Analysis

GBP/USD is currently trying to get back above 1.3900. In case this attempt is successful, GBP/USD will get to the test of the next resistance level which is located at 1.3920.

A successful test of the resistance at 1.3920 will open the way to the test of the next resistance at 1.3950. If GBP/USD moves above 1.3950, it will head towards the resistance level which is located near the recent highs at 1.3980. A move above this level will open the way to the test of the next resistance at 1.4000.

On the support side, the nearest support level for GBP/USD is located at the 50 EMA at 1.3880. If GBP/USD gets below this level, it will head towards the next support level at 1.3865.

A successful test of the support at 1.3865 will push GBP/USD towards the support which is located at the 50 EMA at 1.3850. In case GBP/USD manages to settle below 1.3850, it will move towards the support at 1.3835.

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