GBP/USD Daily Forecast – Test Of Resistance At 1.4240

GBP/USD Video 01.06.21.

British Pound Moves Higher Against U.S. Dollar

GBP/USD is currently trying to settle above the resistance at 1.4240 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently managed to settle below the support at the 90 level and moved towards the next support at 89.75. In case the U.S. Dollar Index declines below this level, it will head towards the support at 89.50 which will be bullish for GBP/USD.

UK has recently reported that Nationwide Housing Prices increased by 1.8% month-over-month in May compared to analyst consensus which called for growth of 0.8%. On a year-over-year basis, Nationwide Housing Prices increased by 10.9%.

Today, foreign exchange market traders will also have a chance to take a look at the final reading of UK Manufacturing PMI report for May. Analysts expect that Manufacturing PMI increased from 60.9 in April to 66.1 in May.

The U.S. will also release the final reading of Manufacturing PMI report for May which is projected to show that Manufacturing PMI grew from 60.5 to 61.5. Construction Spending is expected to increase by 0.6% month-over-month in April after growing by 0.2% in March.

Technical Analysis

GBP/USD managed to settle above the resistance at 1.4200 and made an attempt to settle above the next resistance level which is located at 1.4240. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If GBP/USD settles above 1.4240, it will head towards the resistance at 1.4280. A successful test of this level will push GBP/USD towards the resistance at 1.4345.

On the support side, the previous resistance at 1.4200 will serve as the first support level for GBP/USD. In case GBP/USD settles below this level, it will get to the test of the next support at 1.4180.

A move below 1.4180 will open the way to the test of the support at 1.4150. If GBP/USD declines below this level, it will head towards the 20 EMA at 1.4130.

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