GBP/USD Daily Forecast – Resistance At 1.3865 In Sight

U.S. Dollar Is Mostly Flat Against British Pound

GBP/USD is currently trying to get to the test of the resistance at 1.3865 while the U.S. dollar is moving lower against a broad basket of currencies.

The U.S. Dollar Index managed to get below the support at 92.40 and tries to develop additional downside momentum. In case this attempt is successful, the U.S. Dollar Index will move towards the next support level at 92.15 which will be bullish for GBP/USD.

UK has recently released Claimant Count Change report for June which indicated that the number of people claiming unemployment benefits decreased by 114,800 compared to analyst consensus which called for a decline of 120,000.

Today, foreign exchange market traders will also have a chance to take a look at the latest job market data from U.S. Analysts expect that Initial Jobless Claims declined from 373,000 to 360,000. Continuing Jobless Claims are projected to decrease from 3.34 million to 3.31 million.

U.S. will also release Industrial Production and Manufacturing Production reports for June. Industrial Production is expected to grow by 0.6% month-over-month in June while Manufacturing Production is projected to increase by 0.2%.

Technical Analysis

GBP/USD received support near 1.3835 and is trying to get above the resistance at 1.3865. If this attempt is successful, GBP/USD will get to the test of the next resistance level at the 20 EMA at 1.3875.

In case GBP/USD manages to settle above the 20 EMA at 1.3875, it will head towards the next resistance level which is located at 1.3900. A successful test of the resistance at 1.3900 will open the way to the test of the next resistance at 1.3920.

On the support side, the nearest support level for GBP/USD is located at 1.3835. If GBP/USD declines below this level, it will move towards the next support level which is located at 1.3800. In case GBP/USD manages to settle below the support at 1.3800, it will continue its downside move and get to the test of the next support at 1.3780.

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