GBP/USD Daily Forecast – Support At 1.3280 Stays Strong

British Pound Gains Some Ground Against U.S. Dollar

GBP/USD received support near 1.3280 and is trying to rebound while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index is stuck near the 96 level. In case the U.S. Dollar Index manages to settle above 96, it will gain additional upside momentum and head towards the resistance at 96.25 which will be bearish for GBP/USD.

Yesterday, U.S. released ADP Employment Change report which indicated that private businesses hired 534,000 workers in November compared to analyst consensus of 525,000.

Today, foreign exchange market traders will focus on Initial Jobless Claims and Continuing Jobless Claims reports from U.S. Analysts expect that Initial Jobless Claims report will show that 240,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are expected to decline from 2.05 million to 2 million.

Recent data shows that the job market continues to recover at a robust pace, and the Fed has already decided to focus on inflation. In this light, better-than-expected reports may provide additional support to the American currency.

Technical Analysis

GBP/USD is currently trying to settle back above 1.3300. The nearest material resistance level for GBP/USD is located at 1.3310.

In case GBP/USD manages to settle above this level, it will head towards the next resistance at 1.3350. A successful test of this level will open the way to the test of the resistance which is located at 1.3375.

On the support side, GBP/USD needs to settle below the nearest support level at 1.3280 to have a chance to gain additional downside momentum in the near term.

In case GBP/USD declines below the support at 1.3280, it will move towards the next support level at 1.3250. If GBP/USD gets below 1.3250, it will move towards the support at 1.3230. A successful test of the support at 1.3230 will push GBP/USD towards the support level which is located near recent lows at 1.3200.

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