GBP/USD Daily Forecast – Test Of Resistance At 1.3500

British Pound Is Flat Against U.S. Dollar

GBP/USD is currently trying to settle above 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 is currently located near the 96 level, and it remains to be seen whether it will be able to gain momentum in the last trading session of the year. The nearest resistance level for the U.S. Dollar Index is located at 96.25. In case the U.S. Dollar Index gets to the test of this level, GBP/USD will find itself under pressure.

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 sentiment, which may be driven by COVID-19 news.

The recent coronavirus surge did not provide material support to safe-haven assets as traders bet that countries would not introduce severe restrictions. However, the safe-haven U.S. dollar may get additional support at the beginning of 2022 if COVID-19 situation gets worse.

Technical Analysis

GBP/USD continues its attempts to settle above the resistance at 1.3500. In case GBP/USD manages to settle above this level, it will move towards the next resistance at 1.3515.

A successful test of the resistance at 1.3515 will open the way to the test of the next resistance at 1.3535. If GBP/USD gets above 1.3535, it will head towards the resistance at 1.3550. A move above this level will push GBP/USD towards the resistance at 1.3575.

On the support side, the nearest support for GBP/USD is located at 1.3460. In case GBP/USD manages to settle back below the support at 1.3460, it will head towards the next support level which is located at 1.3440. A successful test of this support level will open the way to the test of the support at 1.3420.

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