GBP/USD Daily Forecast – Test Of Support At 1.3800

British Pound Remains Under Pressure Against U.S. Dollar

GBP/USD is currently trying to settle below the support at 1.3800 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index has managed to settle above the resistance at 92.40 and is trying to get above 92.50. In case this attempt is successful, the U.S. Dollar Index will move towards the resistance at 92.80 which will be bearish for GBP/USD.

Yesterday, U.S. dollar gained upside momentum after the release of better-than-expected ADP Employment Change report.

Today, foreign exchange market traders will focus on Initial Jobless Claims report which is projected to show that 390,000 Americans filed for unemployment benefits in a week.

Traders will also have a chance to take a look at the final readings of Manufacturing PMI reports from U.S. and UK. In the U.S., Manufacturing PMI is projected to increase from 62.1 in May to 62.6 in June. In the UK, Manufacturing PMI is expected to decline from 65.6 to 64.2.

Technical Analysis

GBP/USD managed to settle below the support at 1.3835 and is currently trying to settle below the support at 1.3800. In case GBP/USD manages to settle below this level, it will head towards the next support at 1.3780. RSI remains in the moderate territory and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

A successful test of the support at 1.3780 will open the way to the test of the next support level which is located at 1.3745. In case GBP/USD declines below this level, it will move towards the support at 1.3710.

On the upside, the previous support level at 1.3835 will serve as the first resistance level for GBP/USD. If GBP/USD gets above this level, it will move towards the next resistance which is located at 1.3865. A move above the resistance at 1.3865 will push GBP/USD towards the resistance at 1.3900.

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