GBP/USD Daily Forecast – British Pound Rebounds After Yesterday’s Sell-OffGBP/USD failed to settle below the 20 EMA and is testing the resistance at 1.3865.
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.
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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.
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.