GBP/USD Daily Forecast – Test Of Resistance At 1.3865

GBP/USD Video 22.03.21.

British Pound Attempts To Rebound At The Start Of The Week

GBP/USD is currently trying to settle back above the resistance at 1.3865 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle above the resistance at the 92 level but failed to develop sufficient upside momentum and returned back into the range between the support at 91.75 and the resistance at 92. In case the U.S. Dollar Index settles above 92, it will head towards the next resistance level at 92.25 which will be bearish for GBP/USD.

Today, foreign exchange market traders will have a chance to take a look at Existing Home Sales data from the U.S. Analysts expect that Existing Home Sales declined by 3% month-over-month in February after growing by 0.6% in January.

Traders will also continue to monitor the developments in the U.S. government bond market. Currently, Treasury yields are moving lower which is bearish for the American currency. At the same time, demand for the safe-haven dollar may increase today as emerging market currencies may find themselves under pressure after Turkey fired its central bank governor. Currently, Turkish lira is down by 10% against the dollar.

Technical Analysis

GBP/USD is testing the resistance level at 1.3865. In case this test is successful, GBP/USD will head towards the next resistance at the 20 EMA at 1.3900.

In case GBP/USD gets above the 20 EMA, it will move towards the next resistance at 1.3950. A move above 1.3950 will open the way to the test of the resistance at 1.3980.

On the support side, the nearest support level for GBP/USD is located at the 50 EMA at 1.3835. If GBP/USD declines below the support at the 50 EMA, it will head towards the next support level at 1.3800. A move below this level will push GBP/USD towards the support at 1.3780.

From a big picture point of view, GBP/USD is trading in a wide range between 1.3800 and 1.4000. If GBP/USD manages to get out of this range, it will have a chance to gain momentum.

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