GBP/USD Daily Forecast – British Pound Tries To Gain More Ground Against U.S. Dollar
GBP/USD Video 13.04.21.
Test Of Resistance At 1.3745
GBP/USD is currently trying to settle above the resistance at 1.3745 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index has recently tested the nearest resistance level at the 20 EMA at 92.30. If the U.S. Dollar Index manages to settle above the 20 EMA, it will gain upside momentum and head towards the resistance at 92.50 which will be bearish for GBP/USD.
UK has recently reported that its GDP increased by 0.4% month-over-month in February compared to analyst consensus which called for growth of 0.6%. On a year-over-year basis, GDP declined by 7.8%.
On a year-over-year basis, Industrial Production and Manufacturing Production remained under pressure. Industrial Production declined by 3.5% while Manufacturing Production decreased by 4.2%. Both reports exceeded analyst expectations.
It remains to be seen whether better-than-expected reports will be able to provide additional support to British pound as Treasury yields are moving higher which is bullish for the American currency.
GBP/USD managed to settle above the resistance at 1.3710 and is testing the next resistance level which is located at 1.3745. RSI remains in the moderate territory so there is plenty of room to gain upside momentum in case the right catalysts emerge.
In case GBP/USD settles above the resistance at 1.3745, it will head towards the next resistance level at 1.3780. A move above the resistance at 1.3780 will push GBP/USD towards the 20 EMA which is located at 1.3790.
If GBP/USD gets above the 20 EMA, it will get to the test of the next resistance at the 50 EMA at 1.3800. Most likely, GBP/USD will face material resistance in the 1.3780 – 1.3800 area.
On the support side, a move below 1.3745 will push GBP/USD back towards the support at 1.3710. If GBP/USD declines below this level, it will move towards the support at 1.3665.
For a look at all of today’s economic events, check out our economic calendar.