GBP/USD Daily Forecast – Support At 1.3375 In Sight

British Pound Remains Under Pressure Against U.S. Dollar

GBP/USD is currently moving towards the support level at 1.3375 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle above the resistance level at 96.50. In case this attempt is successful, the U.S. Dollar Index will move towards the next resistance level at 96.70. It should be noted that RSI for the U.S. Dollar Index is in the overbought territory, and the risks of a pullback are increasing.

Today, foreign exchange market traders will have a chance to take a look at flash PMI reports from UK. Analysts expect that UK Manufacturing PMI declined from 57.8 in October to 57.3 in November. UK Services PMI is projected to decrease from 59.1 to 58.5.

In the U.S., Manufacturing PMI is expected to increase from 58.4 in October to 59 in November, while Services PMI is projected to grow from 58.7 to 59. It will be interesting to see whether rising inflation had any negative impact on manufacturing and services segments. Analysts expect that they will continue to grow at a robust pace, but the real situation may be different in case higher prices have finally started to put pressure on growth.

Technical Analysis

GBP/USD is currently trying to get to the test of the support at 1.3375. In case GBP/USD declines below this level, it will move towards the next support which is located at 1.3350.

A successful test of the support at 1.3350 will open the way to the test of the next support at 1.3310. If GBP/USD gets below this level, it will move towards the next support at 1.3280.

On the upside, the previous support at 1.3400 will serve as the first resistance level for GBP/USD. The next resistance level is located at 1.3425.

If GBP/USD manages to settle back above this level, it will move towards the next resistance at 1.3450. A move above 1.3450 will push GBP/USD towards the resistance at 1.3470.

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