GBP/USD Daily Forecast – Support At 1.3460 In Sight

British Pound Is Losing Ground Against U.S. Dollar

GBP/USD is moving towards the support level at 1.3460 while U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index received support near 95.75 and moved back above the 96 level. In case the U.S. Dollar Index settles above 96, it will head towards the resistance at 96.25 which will be bearish for GBP/USD.

Today, foreign exchange market traders will focus on Initial Jobless Claims report from U.S. Analysts expect that Initial Jobless Claims report will show that 208,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to increase from 1.86 million to 1.87 million.

Trading will likely remain choppy in the remaining days of the year as many traders are out of their desks and will return at the start of 2022. Rapid moves are possible in a thin market, so those who have chosen to stay behind their desks should be prepared for such moves.

Technical Analysis

GBP/USD failed to settle above the resistance at 1.3500 and moved towards the support level at 1.3460. In case GBP/USD manages to settle below this level, it will head towards the next support at 1.3440.

A move below the support at 1.3440 will push GBP/USD towards the support at 1.3420. If GBP/USD declines below this level, it will head towards the support level at 1.3400.

On the upside, GBP/USD needs to settle above 1.3500 to continue its upside move. The next resistance level is located at 1.3515. If GBP/USD gets above this level, it will move towards the resistance at 1.3535.

A successful test of the resistance at 1.3535 will open the way to the test of the resistance at 1.3550. In case GBP/USD settles above this level, it will head towards the next resistance level which is located at 1.3575.

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