GBP/USD Daily Forecast – Test Of Support At 1.3815

British Pound Is Moving Lower Against U.S. Dollar

GBP/USD is currently trying to settle below the 50 EMA at 1.3815 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index managed to settle above the 20 EMA near 92.60 and is trying to settle above the next resistance level at 92.80. If the U.S. Dollar Index gets above this level, it will move towards the resistance at 93.10 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 Consumer Inflation Expectations report from U.S.

Analysts expect that Consumer Inflation Expectations increased from 4.8% in July to 4.9% in August. The Fed pays close attention to Consumer Inflation Expectations, and a higher-than-expected number may provide additional support to the U.S. dollar. It should be noted that Inflation Rate and Core Inflation Rate reports from U.S. will be released tomorrow, and many traders would prefer to wait for these reports before making big moves.

Technical Analysis

GBP/USD is currently testing the support level at the 50 EMA at 1.3815. In case this test is successful, GBP/USD will get to the test of the next support at the 20 EMA at 1.3800.

A move below the support at 1.3800 will open the way to the test of the support at 1.3780. If GBP/USD manages to settle below this level, it will head towards the next support at 1.3745.

On the upside, GBP/USD needs to get back above the 50 EMA to have a chance to develop upside momentum in the near term. The next resistance level is located at 1.3835.

If GBP/USD gets above this level, it will head towards the next resistance at 1.3865. A successful test of this level will open the way to the test of the resistance at 1.3880. In case GBP/USD gets above 1.3880, it will move towards the resistance level which is located at 1.3900.

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