GBP/USD Daily Forecast – Resistance At 1.3350 In Sight

British Pound Is Mostly Flat Against U.S. Dollar

GBP/USD is currently trying to get to the test of the resistance at 1.3350 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index managed to settle back above the 96 level and is currently testing the resistance level at 96.25. In case this test is successful, the U.S. Dollar Index will move towards the next resistance at 96.50 which will be bearish for GBP/USD.

Today, foreign exchange market traders will have a chance to take a look at Pending Home Sales report from U.S. Analysts expect that Pending Home Sales increased by 1% month-over-month in October after falling by 2.3% in September. On a year-over-year basis, Pending Home Sales are projected to decline by 7%.

Traders will also focus on coronavirus news. Global markets are trying to rebound after the major sell-off on Friday. Meanwhile, Treasury yields have started to move higher, which can provide additional support to the American currency.

Technical Analysis

GBP/USD is trading near the resistance level at 1.3350. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

In case GBP/USD manages to settle above the resistance at 1.3350, it will move towards the next resistance level at 1.3375. A move above this level will push GBP/USD towards the resistance at 1.3400. In case GBP/USD gets above 1.3400, it will head towards the resistance which is located at the 20 EMA at 1.3425.

On the support side, the nearest support level for GBP/USD is located at 1.3310. In case GBP/USD manages to settle below this support level, it will head towards the next support at 1.3280.

A successful test of the support at 1.3280 will push GBP/USD towards the next support at 1.3250. If GBP/USD declines below the support at 1.3250, it will move towards the next support at 1.3230.

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