GBP/USD Daily Forecast – Test Of Resistance At 1.3500

British Pound Stays Strong Against U.S. Dollar

GBP/USD is currently trying to settle above the resistance at 1.3500 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index has recently made another attempt to settle below the support at 95.75 but failed to develop sufficient downside momentum. In case the U.S. Dollar Index manages to settle below this level, it will move towards the next support at 95.40 which will be bullish for GBP/USD.

There are no important economic reports scheduled to be released in the UK today so foreign exchange market traders will focus on job market data from U.S.

Initial Jobless Claims report is projected to show that 260,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to decline from 2.16 million to 2.12 million.

It remains to be seen whether job market reports from U.S. will have a material impact on GBP/USD dynamics. Yesterday’s UK inflation data provided significant support to British pound, and GBP/USD bulls will likely try to push the pound higher during today’s trading session.

Technical Analysis

GBP/USD managed to settle above the resistance at 1.3470 and is trying to settle above the next resistance level which is located at 1.3500. In case this attempt is successful, GBP/USD will move towards the resistance at the 20 EMA at 1.3525.

A successful test of the resistance at the 20 EMA will push GBP/USD towards the resistance at 1.3560. In case GBP/USD gets above this level, it will head towards the resistance at 1.3575. A move above this level will open the way to the test of the resistance at 1.3600.

On the support side, the previous resistance at 1.3470 will serve as the first support level for GBP/USD. If GBP/USD moves back below this level, it will head towards the support at 1.3450. A successful test of the support at 1.3450 will push GBP/USD towards the next support level which is located at 1.3425.

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