GBP/USD Daily Forecast – Test Of Resistance At 1.4080GBP/USD is trying to move higher at the beginning of the week.
GBP/USD Video 17.05.21.
British Pound Is Mostly Flat Against U.S. Dollar
GBP/USD is currently trying to settle above the resistance at 1.4080 while the U.S. dollar is gaining some ground against a broad basket of currencies.
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The U.S. Dollar Index received support at 90.30 and is moving towards the resistance at 90.50. In case the U.S. Dollar Index manages to settle above this level, it will head towards the resistance at 90.70 which will be bearish 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 NY Empire State Manufacturing Index from the U.S. Analysts expect that NY Empire State Manufacturing Index declined from 26.3 to April to 23.9 in May.
Traders will also keep an eye on the developments in U.S. government bond markets. Treasury yields continue to pull back as Fed officials managed to calm markets. Currently, the yield of 10-year Treasuries is trying to settle below the 20 EMA at 1.62%. In case this attempt is successful, it will head towards the 20 EMA at 1.56% which will be bearish for the American currency.
GBP/USD is currently trying to stay above 1.4080. In case GBP/USD manages to settle above this level, it will move towards the next resistance at 1.4120. RSI is in the moderate territory, and there is plenty of room to gain additional momentum in case the right catalysts emerge.
If GBP/USD settles above the resistance at 1.4120, it will move towards the next resistance at 1.4150. A successful test of this level will open the way to the test of the resistance at 1.4180.
On the support side, a move below 1.4080 will push GBP/USD towards the support at 1.4050. If GBP/USD declines below the support at 1.4050, it will head towards the next support at 1.4020. A successful test of this level will open the way to the test of the support which is located at the 20 EMA at 1.4000.
For a look at all of today’s economic events, check out our economic calendar.