GBP/USD Daily Forecast – Resistance At 1.3745 In Sight

British Pound Continues To Rebound Against U.S. Dollar

GBP/USD is heading towards the resistance level at 1.3745 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle below the support level at 92.80. In case this attempt is successful, the U.S. Dollar Index will move towards the next support level near the 20 EMA at 92.40 which will be bullish for GBP/USD.

Today, foreign exchange market traders will focus on the economic data from U.S. Initial Jobless Claims report is expected to show that 350,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are expected to decline from 3.24 million to 3.1 million.

Traders will also take a look at Existing Home Sales report for June which is projected to indicate that Existing Home Sales increased by 0.9% month-over-month.

Technical Analysis

GBP/USD gained strong upside momentum after it failed to settle below the support at 1.3575. GBP/USD has recently managed to get above the resistance at 1.3710 and is trying to get to the test of the next resistance level at 1.3745.

If GBP/USD manages to settle above this level, it will head towards the next resistance at 1.3780. A successful test of the resistance at 1.3780 will push GBP/USD towards the next resistance level which is located at the 20 EMA at 1.3800. In case GBP/USD gets above the 20 EMA, it will continue its upside move and head towards the resistance at 1.3835.

On the support side, the previous support level at 1.3710 will serve as the first resistance level for GBP/USD. RSI has moved away from the oversold territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If GBP/USD declines below 1.3710, it will move towards the next support level at 1.3670. A successful test of this level will open the way to the test of the support at 1.3635. In case GBP/USD gets below 1.3635, it will move towards the next support at 1.3610.

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