Vladimir Zernov
Add to Bookmarks

GBP/USD Video 04.03.21.

British Pound Tries To Gain Ground Against U.S. Dollar

GBP/USD continues its attempts to settle above the resistance at 1.3950 while the U.S. dollar is gaining some ground against a broad basket of currencies.

Know where GBP/USD is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

The U.S. Dollar Index is currently trying to settle above the 91 level. If this attempt is successful, the U.S. Dollar Index will head towards the next resistance level which is located at 91.10. A move above this level will open the way to the test of the resistance at 91.30 which will be bearish for GBP/USD.

Yesterday, the U.S. released ADP Employment Change report which indicated that private businesses hired 117,000 workers in February compared to analyst consensus of 177,000.

Today, foreign exchange market traders will have a chance to take a look at another set of U.S. employment data. Initial Jobless Claims report is projected to show that 750,000 Americans filed for unemployment benefits in a week. Meanwhile, Continuing Jobless Claims are expected to decline from 4.42 million to 4.3 million.


Technical Analysis

GBP/USD is currently testing the nearest resistance level at 1.3950. GBP/USD managed to get above this level during yesterday’s trading session but faced significant resistance near 1.4000 and pulled back below 1.3950.

If GBP/USD settles above 1.3950, it will head towards the next resistance level at 1.3980. A move above this level will push GBP/USD towards the resistance at 1.4000. In case GBP/USD gets above the resistance at 1.4000, it will gain additional upside momentum and head towards the resistance at 1.4030.

On the support side, the nearest support level for GBP/USD is located at the 20 EMA at 1.3930. A move below this level will push GBP/USD towards the support at 1.3900. If GBP/USD declines below 1.3900, it will head towards the next support level which is located at 1.3865.

I’d note that GBP/USD continues to stabilize in a wide trading range between the support at 1.3900 and the resistance at 1.4000 and has a good chance to continue its upside trend once it manages to get above 1.4000.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker