GBP/USD Daily Forecast – Stuck Near Resistance At 1.4200

GBP/USD Video 31.05.21.

British Pound Tries To Gain Ground At The Start Of The Week

GBP/USD is currently trying to settle above the resistance at 1.4200 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently made another attempt to settle below the support at the 90 level but failed to develop sufficient downside momentum. If the U.S. Dollar Index manages to settle below this level, it will head towards the support at 89.75 which will be bullish for GBP/USD.

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

Trading may be calm as U.S. markets are closed in observance of Memorial Day, but the test of the 1.4200 level may draw traders’ attention.

The economic calendar will be more active in the second part of the week as traders will have a chance to take a look at key employment reports from the U.S., including ADP Employment Change, Initial Jobless Claims, Non Farm Payrolls and Unemployment Rate.

Technical Analysis

GBP/USD continues its attempts to settle above the resistance at 1.4200. In case GBP/USD manages to settle above this level, it will head towards the next resistance which is located near the recent highs at 1.4240.

A move above the resistance at 1.4240 will open the way to the test of the next resistance at 1.4280. If GBP/USD gets above the resistance at 1.4280, it will head towards the next resistance level at 1.4345.

On the support side, the nearest support level for GBP/USD is located at 1.4180. In case GBP/USD manages to settle below this level, it will move towards the support at 1.4150.

A move below the support at 1.4150 will open the way to the test of the support which is located at the 20 EMA at 1.4115. In case GBP/USD manages to settle below the 20 EMA, it will head towards the resistance at 1.4100.

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