GBP/USD Daily Forecast – Resistance At 1.3780 In Sight

GBP/USD Video 26.03.21.

British Pound Moves Higher Against U.S. Dollar Ahead Of The Weekend

GBP/USD is currently trying to settle above the resistance at 1.3745 while U.S. dollar pulls back against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to get to the test of the resistance at the 93 level but failed to develop sufficient upside momentum and pulled back towards the support at 92.70. In case the U.S. Dollar Index declines below this support level, it will head towards the next support at 92.50 which will be bullish for GBP/USD.

Today, foreign exchange market traders will focus on Retail Sales data from the UK. Analysts expect that Retail Sales increased by 2.1% month-over-month in February after falling by 8.2% in January. On a year-over-year basis, Retail Sales are projected to decline by 3.5%.

Traders will also keep an eye on U.S. Treasury yields which have began to rebound after the recent pullback. Currently, the yield of 10-year Treasuries is trying to settle above 1.63% while the yield of 30-year Treasuries is testing the 2.36% level. If Treasury yields gain upside momentum, U.S. dollar may get more support.

Technical Analysis

GBP/USD managed to get above the resistance at 1.3745 and is trying to settle above this level. In case this attempt is successful, GBP/USD will get to the test of the next resistance at 1.3780.

A successful test of the resistance level at 1.3780 will open the way to the test of the resistance at 1.3800. If GBP/USD gets above this level, it will head towards the next resistance which is located at the 50 EMA at 1.3825. A move above the 50 EMA will push GBP/USD towards the resistance at the 20 EMA at 1.3845.

On the support side, a move below 1.3745 will push GBP/USD towards the next support level which is located at 1.3710. In case GBP/USD declines below the support at 1.3710, it will head towards the next support level which is located near the recent lows at 1.3665.

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