GBP/USD Daily Forecast – British Pound Stays In The Previous Trading Range

British Pound Attempts To Rebound Against U.S. Dollar

GBP/USD is currently trying to get back above the 20 EMA near 1.4130 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently made another attempt to settle above the 50 EMA at 90.60 but failed to develop sufficient upside momentum and declined towards 90.50. In case the U.S. Dollar Index manages to settle above the 50 EMA, it will move towards the resistance at 90.90 which will be bearish for GBP/USD.

UK has just released Claimant Count Change report for May which indicated that the number of people claiming unemployment benefits declined by 92,600 compared to analyst consensus which called for a decline of 62,000. Unemployment Rate report showed that Unemployment Rate decreased from 4.8% in March to 4.7% in May, in line with the analyst consensus.

Today, foreign exchange market traders will also have a chance to take a look at economic reports from the U.S. Analysts expect that Retail Sales declined by 0.7% month-over-month in May. Producer Prices are expected to grow by 0.6% on a month-over-month basis. Industrial Production is projected to increase by 0.6% month-over-month in May, while Manufacturing Production is expected to grow by 0.5%.

It remains to be seen whether these reports will trigger big moves as traders may stay focused on Fed Interest Rate Decision which will be released on Wednesday.

Technical Analysis

GBP/USD failed to settle below the support at 1.4080 and rebounded towards the 20 EMA at 1.4130. In case GBP/USD manages to settle above the 20 EMA, it will move towards the next resistance at 1.4150.

A successful test of the resistance at 1.4150 will open the way to the test of the resistance at 1.4180. In case GBP/USD gets above this level, it will move towards the next resistance at 1.4200.

On the support side, the nearest support level for GBP/USD is located at 1.4100. If GBP/USD gets below this level, it will head towards the next support at 1.4080. A move below this level will push GBP/USD towards the 50 EMA at 1.4065. In case GBP/USD declines below the 50 EMA, it will head towards the support at 1.4050.

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