GBP/USD Daily Forecast – Test Of Resistance At 1.3340

British Pound Continues To Gain Ground Against U.S. Dollar

GBP/USD is currently trying to settle above the resistance at 1.3340 while U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index managed to settle below the support at 96.25 and is trying to settle below the next support level at 96. The U.S. Dollar Index has already made several attempts to settle below 96 in December, but failed to develop sufficient downside momentum. In case the U.S. Dollar Index declines below this level, it will move towards the next support at 95.75 which will be bullish for GBP/USD.

Today, foreign exchange market traders will focus on the economic data from U.S. Analysts expect that Initial Jobless Claims report will show that 205,000 Americans filed for unemployment benefits in a week.

Durable Goods Orders are expected to increase by 1.6% month-over-month in November. Personal Income is expected to increase by 0.4% month-over-month in November while Personal Spending is projected to grow by 0.6%.

New Home Sales are expected to grow by 3.4% month-over-month in November. The final reading of Michigan Consumer Sentiment report is expected to show that Consumer Sentiment improved from 67.4 in November to 70.4 in December.

Technical Analysis

GBP/USD managed to settle above the resistance at 1.3310 and is currently trying to settle above the next resistance at 1.3340. In case this attempt is successful, GBP/USD will move towards the next resistance level which is located at 1.3370.

A move above 1.3370 will lead to the test of the next resistance at the 50 EMA at 1.3380. In case GBP/USD gets above the 50 EMA, it will move towards the resistance level at 1.3400.

On the support side, a move below 1.3340 will push GBP/USD back towards 1.3310. In case GBP/USD manages to settle below 1.3310, it will head towards the next support level which is located at the 20 EMA at 1.3290.

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