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GBP/USD Daily Forecast – Test Of Support At 1.3745

By:
Vladimir Zernov
Published: Jul 19, 2021, 06:44 UTC

GBP/USD declined below the support at 1.3780 and is trying to get below the next support at 1.3745.

GBP/USD

In this article:

U.S. Dollar Tries To Gain More Ground Against British Pound

GBP/USD is currently trying to settle below the support at 1.3745 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is trying to get above the nearest resistance level which is located at 92.80. In case this attempt is successful, the U.S. Dollar Index will get additional upside momentum and head towards the next resistance at 93.10.

There are no important economic reports scheduled to be released in the U.S. and UK today so foreign exchange market traders will focus on general market sentiment.

At this point, it looks that traders are ready to increase purchases of safe-haven assets which is bullish for U.S. government bonds and U.S. dollar. The yield of 10-year Treasuries has managed to settle below 1.30% and is trying to get to the test of the recent lows at 1.25%. However, falling yields do not put pressure on the American currency as the U.S. dollar is supported by the increase in demand for safe-haven assets.

Technical Analysis

gbp usd july 19 2021

GBP/USD managed to settle below the support at 1.3780 and is trying to get below the next support level which is located at 1.3745. In case this attempt is successful, GBP/USD will move towards the support at 1.3710.

A successful test of the support at 1.3710 will push GBP/USD towards the next support at April lows at 1.3670. If GBP/USD manages to settle below this level, it will head towards the next support at 1.3635.

On the upside, GBP/USD needs to stay above 1.3745 to have a chance to develop upside momentum in the near term. The previous support at 1.3780 will serve as the first resistance level for GBP/USD.

If GBP/USD gets above this level, it will move towards the next resistance at 1.3800. A move above this level will open the way to the test of the resistance which is located near the 20 EMA at 1.3835.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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