GBP/USD Daily Forecast – Support At 1.3470 Stays Strong

British Pound Attempts To Rebound At The Start Of The Week

GBP/USD received support near 1.3470 and is trying to get to the test of the resistance at 1.3500 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle below the support at 94.20 but failed to develop sufficient downside momentum. In case the U.S. Dollar Index settles below this level, it will move towards the support at 94 which will be bullish for GBP/USD.

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

Treasury yields are currently trying to rebound after the recent pullback, which may provide some additional support to the American currency.

Technical Analysis

GBP/USD is currently trading in the range between the support level at 1.3470 and the resistance level at 1.3500.

In case GBP/USD manages to settle below the support at 1.3470, it will gain additional downside momentum and head towards the next support level at 1.3435. RSI remains in the moderate territory despite the recent pullback, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If GBP/USD settles below the support at 1.3435, it will move towards the support at 1.3415. A successful test of this level will open the way to the test of the next support at 1.3400.

On the upside, GBP/USD needs to settle above 1.3500 to have a chance to rebound. The next resistance level for GBP/USD is located at 1.3535. In case GBP/USD manages to settle above this level, it will head towards the resistance at 1.3575. A move above 1.3575 will push GBP/USD towards the resistance at 1.3600.

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