GBP/USD Daily Forecast – British Pound Remains Under Pressure Ahead Of The Weekend

U.S. Dollar Attempts To Gain More Ground Against British Pound

GBP/USD is currently trying to settle below the support at 1.3745 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index has managed to get above 92.50 and is slowly moving towards the resistance at 92.80. In case the U.S. Dollar Index gets to the test of the resistance at 92.80, GBP/USD will find itself under more pressure.

Yesterday, UK reported that Manufacturing PMI decreased from 65.6 in May to 63.9 in June compared to analyst consensus of 64.2. In the U.S., Manufacturing PMI remained unchanged at 62.1 while analysts expected that it would grow to 62.6. It should be noted that Manufacturing PMI in U.S. and UK remains at high levels so recent declines had no material impact on currency dynamics.

Today, foreign exchange market traders will focus on job market reports from U.S. Non Farm Payrolls report is projected to show that U.S. economy added 700,000 jobs in June. Unemployment Rate is projected to decline from 5.8% in May to 5.7% in June. Strong job market reports may provide additional support to the American currency which continues to move higher against a broad basket of currencies as traders bet that Fed will have to raise rates by the end of 2022.

Technical Analysis

GBP/USD managed to settle below the support at 1.3780 and is trying to get below the next support level which is located at 1.3745. In case GBP/USD declines below this level, it will head towards the support at 1.3710.

A move below the support at 1.3710 will open the way to the test of the next support at 1.3675. In case GBP/USD manages to settle below 1.3675, it will head towards the support at 1.3635.

On the upside, the previous support at 1.3780 will serve as the first resistance level for GBP/USD. The next resistance level is located at 1.3800. If GBP/USD moves above this level, it will head towards the resistance at 1.3835.

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