GBP/USD Daily Forecast – Test Of Resistance At 1.3535

British Pound Gains Some Ground Against U.S. Dollar

GBP/USD is currently trying to settle above the resistance at 1.3535 while U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to settle back below the support at 96.25 and is trying to gain additional downside momentum. In case this attempt is successful, it will head towards the support at 96 which will be bullish for GBP/USD.

Today, foreign exchange market traders will focus on the ADP Employment Change report from U.S. Analysts expect that ADP Employment Change report will show that private businesses hired 400,000 workers in December.

Traders will also take a look at the final reading of U.S. Services PMI report for December. The report is expected to show that Services PMI declined from 58 in November to 57.5 in December.

Traders will also continue to monitor the developments in U.S. government bond markets. Treasury yields have pulled back from recent highs, which was bearish for the U.S. dollar. In case this pullback continues, the American currency will find itself under more pressure.

Technical Analysis

GBP/USD is testing the resistance level at 1.3535. In case this test is successful, GBP/USD will move towards the next resistance which is located at 1.3550.

A move above the resistance at 1.3550 will open the way to the test of the next resistance at 1.3575. In case GBP/USD manages to settle above this level, it will head towards the next resistance level at 1.3610.

On the support side, the nearest support level for GBP/USD is located at 1.3500 as recent trading sessions indicated that there is no significant level near 1.3515. If GBP/USD declines below the support at 1.3500, it will move towards the next support level at 1.3460.

A successful test of the support at 1.3460 will push GBP/USD towards the support at 1.3440. If GBP/USD gets below this level, it will move towards the next support level at the 50 EMA at 1.3420.

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