GBP/USD Daily Forecast – Resistance At 1.3575 Stays Strong

British Pound Gains Ground Against U.S. Dollar

GBP/USD is currently trying to settle back above 1.3550 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index is testing the support at the 94 level. In case this test is successful, the U.S. Dollar Index will move towards the next support at 93.75 which will be bullish for GBP/USD.

There are no important economic reports scheduled to be released in the UK today so foreign exchange market traders will focus on the Factory Orders report from U.S.

Analysts expect that Factory Orders increased by 1% month-over-month in August after growing by 0.4% in July.

Traders will also keep an eye on the developments in U.S. government bond markets. The yield of 10-year Treasuries has managed to find support near 1.45% and is trying to gain upside momentum. In case this attempt is successful, it will move towards the resistance at 1.50% which may provide more support to the American currency.

Technical Analysis

GBP/USD has recently made an attempt to settle below 1.3550 but failed to develop sufficient downside momentum and moved back into the 1.3550 – 1.3575 range.

In case GBP/USD manages to settle back above 1.3550, it will head towards the next resistance level which is located at 1.3575. This resistance level has already been tested several times in recent trading sessions and proved its strength.

A move above 1.3550 will push GBP/USD towards the resistance level at 1.3600. If GBP/USD settles above 1.3600, it will head towards the next resistance level which is located near the 20 EMA at 1.3635.

On the support side, GBP/USD needs to settle below 1.3550 to have a chance to develop downside momentum in the near term. The next support level is located at 1.3520.

In case GBP/USD declines below 1.3520, it will head towards the next support at 1.3490. A successful test of the support at 1.3490 will push GBP/USD towards the support at 1.3450.

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