Vladimir Zernov
Add to Bookmarks

GBP/USD Video 23.04.21.

U.S. Dollar Is Losing Ground Against British Pound

GBP/USD received support at the 20 EMA at 1.3840 and is trying to settle above the resistance at 1.3865 while the U.S. dollar is losing ground against a broad basket of currencies.

Know where GBP/USD is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

The U.S. Dollar Index declined below 91.30 and is slowly moving towards the support at the 91 level. In case the U.S. Dollar Index gets to the test of this level, GBP/USD will get more support.

UK has just reported that Retail Sales increased by 5.4% month-over-month in March compared to analyst consensus which called for growth of 1.5%. On a year-over-year basis Retail Sales grew by 7.2%.

Consumer Confidence report indicated that Consumer Confidence improved from -16 in March to -15 in April compared to analyst consensus of -12.

Today, foreign exchange market traders will also have a chance to take a look at flash PMI data for April. Analysts expect that Manufacturing PMI increased from 58.9 in March to 59 in April while Services PMI improved from 56.3 to 59.


Technical Analysis

GBP/USD did not manage to settle below the support at the 20 EMA at 1.3840 and is trying to settle above the resistance at 1.3865.

In case GBP/USD manages to settle above this level, it will move towards the next resistance at 1.3900. A successful test of this resistance level will open the way to the test of the resistance at 1.3920. If GBP/USD settles above this level, it will head towards the next resistance at 1.3950.

On the support side, GBP/USD needs to settle below the 20 EMA at 1.3840 to continue its downside move. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

In case GBP/USD declines below the 20 EMA, it will head towards the next support at the 50 EMA at 1.3825. This support level has been tested during yesterday’s trading session and proved its strength. In case GBP/USD declines below the 50 EMA, it will move towards the support at 1.3800.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker