GBP/USD Daily Forecast – Test Of Resistance At 1.3710

British Pound Gains Ground Against U.S. Dollar

GBP/USD is currently trying to get back above the resistance at 1.3710 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has recently tested the resistance level at 93.10 but lost momentum and pulled back below the 93 level. The nearest support level for the U.S. Dollar Index is located at the 20 EMA at 92.85. If the U.S. Dollar Index manages to settle below this level, it will move towards the 50 EMA at 92.45 which will be bullish for GBP/USD.

Today, foreign exchange market traders will wait for comments from Fed Chair Jerome Powell at the Jackson Hole Symposium.

Traders will also have a chance to take a look at economic data from U.S. Analysts expect that Personal Income increased by 0.2% month-over-month in July after growing by 0.1% in June. Personal Spending is projected to increase by 0.3% month-over-month. The final reading of Consumer Sentiment report for August is projected to indicate that Consumer Sentiment decreased from 81.2 to 70.7.

Technical Analysis

GBP/USD did not manage to settle below the support level at 1.3690 and moved towards the resistance level at 1.3710. In case GBP/USD settles above the resistance at 1.3710, it will head towards the next resistance level which is located at 1.3745.

A successful test of the resistance at 1.3745 will open the way to the test of the next resistance at the 20 EMA at 1.3760. If GBP/USD gets above the 20 EMA, it will head towards the next resistance level at 1.3780.

On the support side, the nearest support level for GBP/USD is still located at 1.3690. If GBP/USD settles below this level, it will move towards the next support level at 1.3665.

A move below the support level at 1.3665 will push GBP/USD towards the next support at 1.3635. In case GBP/USD declines below the support at 1.3635, it will head towards the next support level which is located at the recent lows at 1.3600.

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