GBP/USD Daily Forecast – Resistance At 1.3800 Stays Strong

GBP/USD Video 29.03.21.

British Pound Pulls Back At The Start Of The Week

GBP/USD is currently moving towards the support level at 1.3745 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index managed to stay above the support at 92.70 and is trying to get to the test of the nearest resistance level at 93. If the U.S. Dollar Index manages to settle above this level, it will gain additional upside momentum which will be bearish for GBP/USD.

There are no important economic reports scheduled to be released in the U.S. and UK today so foreign exchange market traders will be focused on general sentiment and U.S. government bond yields.

Treasury yields are currently moving lower, but it looks that current levels are high enough in order to provide support to the American currency. However, additional pullback may hurt dollar’s upside trend which will be bullish for GBP/USD.

Technical Analysis

GBP/USD has recently made an attempt to settle above the resistance at 1.3800 but failed to develop sufficient upside momentum and pulled back. At this point, GBP/USD managed to get below the support at 1.3780 and is moving towards the next support level which is located at 1.3745. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

In case GBP/USD settles below the support at 1.3745, it will move towards the next support level at 1.3710. A successful test of the support at 1.3710 will push GBP/USD towards the next support at 1.3665.

On the upside, the previous support at 1.3780 will serve as the first resistance level for GBP/USD. If GBP/USD manages to settle above this level, it will get to the test of the next resistance at 1.3800. A move above the resistance at 1.3800 will open the way to the test of the resistance which is located at the 50 EMA at 1.3820. If GBP/USD gets above the 50 EMA, it will move towards the resistance at 1.3835.

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