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GBP/USD Daily Forecast – British Pound Tries To Rebound At The Start Of The Week

By:
Vladimir Zernov
Published: Aug 23, 2021, 07:07 UTC

GBP/USD failed to settle below 1.3600 and is trying to settle above the resistance level at 1.3635.

GBP/USD

In this article:

British Pound Gains Ground Against U.S. Dollar

GBP/USD is currently trying to settle back above the resistance at 1.3635 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index failed to settle above the resistance at 93.65 and is testing the support level at 93.40. In case this test is successful, the U.S. Dollar Index will move towards the next support level at 93.10 which will be bullish for GBP/USD.

Today, foreign exchange market traders will have a chance to take a look at flash readings of PMI reports from UK. Analysts expect that UK Manufacturing PMI declined from 60.4 in July to 59.5 in August. Services PMI is projected to decrease from 59.6 to 59.

In the U.S., Manufacturing PMI is projected to decline from 63.4 in July to 62.8 in August while Services PMI is expected to decrease from 59.9 to 59.4.

The reports will show whether economies have already felt the negative impact of the Delta variant of coronavirus. Disappointing PMI reports may provide additional support to safe-haven assets which will be bullish for the American currency.

Technical Analysis

gbp usd august 23 2021

GBP/USD is testing the resistance level at 1.3635. In case this test is successful, GBP/USD will get to another test of the resistance at 1.3665.

A successful test of the resistance at 1.3665 will open the way to the test of the resistance at 1.3690. If GBP/USD manages to settle above the resistance at 1.3690, it will move towards the next resistance level which is located at 1.3710. A move above this level will push GBP/USD towards the resistance at 1.3745.

On the support side, a move below 1.3635 will push GBP/USD towards the support level at 1.3600. In case GBP/USD declines below this support level, it will gain additional downside momentum and head towards the next support at 1.3575. A successful test of the support at 1.3575 will open the way to the test of the next support level which is located at 1.3540.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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