GBP/USD Daily Forecast – Test Of Support At 1.3375

British Pound Is Flat Against U.S. Dollar

GBP/USD continues its attempts to settle below the support level at 1.3375 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index remains stuck near the resistance level at 96.50. In case the U.S. Dollar Index manages to settle above this level, it will move towards the resistance level at 96.70 which will be bearish for GBP/USD.

Today, foreign exchange market traders will focus on the economic data from U.S., which will be released ahead of the Thanksgiving Day.

Initial Jobless Claims report is projected to show that 260,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are expected to decline from 2.08 million to 2.03 million.

Analysts expect that Durable Goods Orders increased by 0.2% month-over-month in October after falling by 0.4% in September.

The second estimate of the third-quarter GDP Growth Rate is expected to show that GDP increased by 2.2% quarter-over-quarter. Consumer Sentiment is projected to decline from 71.7 in October to 66.9 in November.

Foreign exchange market traders will also have a chance to take a look at Personal Income and Personal Spending data. Analysts expect that Personal Income increased by 0.2% month-over-month in October while Personal Spending grew by 1%. New Home Sales are expected to decline by 2% month-over-month in October.

While it’s a very busy day on the U.S. economic calendar, it remains to be seen whether traders will be ready to make big moves ahead of the holiday.

Technical Analysis

GBP/USD is testing the support level at 1.3375. If GBP/USD manages to settle below this level, it will move towards the next support at 1.3350.

A move below 1.3350 will push GBP/USD towards the support at 1.3310. In case GBP/USD declines below this level, it will head towards the support level at 1.3280.

On the upside, the nearest resistance level for GBP/USD is located at 1.3400. In case GBP/USD gets above this level, it will head towards the resistance at 1.3425. A successful test of this level will open the way to the test of the resistance at 1.3450.

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