GBP/USD Daily Forecast – British Pound Moves Higher Against U.S. Dollar
U.S. Dollar Is Losing Ground Against British Pound
GBP/USD is currently trying to settle above the resistance at 1.3600 while the U.S. dollar is losing ground against a broad basket of currencies.
Yesterday, the U.S. Dollar Index faced strong resistance near yearly highs at 94.50 and pulled back towards the support at 94.20. Currently, the U.S. Dollar Index is trying to settle below this support level. In case this attempt is successful, it will get to the test of the next support at the 94 level which will be bullish for GBP/USD.
UK has recently released Halifax House Price Index for September which indicated that house prices increased by 1.7% month-over-month compared to analyst consensus which called for growth of 1.2%. On a year-over-year basis, house prices grew by 7.4%.
Today, foreign exchange market traders will also have a chance to take a look at Initial Jobless Claims and Continuing Jobless Claims reports from U.S. Initial Jobless Claims report is projected to show that 348,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to decline from 2.8 million to 2.78 million.
GBP/USD failed to settle below the support at 1.3575 and rebounded towards the resistance at 1.3600. In case GBP/USD manages to settle above the resistance at 1.3600, it will move towards the next resistance which is located near the 20 EMA at 1.3635.
A successful test of the resistance at 1.3635 will push GBP/USD towards the next resistance at 1.3665. If GBP/USD gets above this level, it will head towards the resistance at 1.3690.
On the support side, GBP/USD needs to settle below the nearest support level at 1.3575 to have a chance to gain additional downside momentum in the near term. The next support level for GBP/USD is located at 1.3550. If GBP/USD declines below the support at 1.3550, it will move towards the next support level which is located at 1.3520.
For a look at all of today’s economic events, check out our economic calendar.