GBP/USD Daily Forecast – Test Of Support At 1.3835

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

GBP/USD is currently trying to settle below the support at 1.3835 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index has managed to settle above the resistance at 92 and continues its attempts to settle above the next resistance level at 92.15. In case the U.S. Dollar Index gets above this level, it will move towards the next resistance at the recent highs at 92.40 which will be bearish for GBP/USD.

UK has recently released the final reading of the first-quarter GDP Growth Rate report which indicated that GDP declined by 1.6% quarter-over-quarter compared to analyst consensus which called for a decline of 1.5%.

Today, foreign exchange market traders will also have a chance to take a look at economic data from U.S. Analysts expect that ADP Employment Change report will indicate that private businesses added 600,000 jobs in June.

Pending Home Sales are projected to decline by 0.8% month-over-month in May after falling by 4.4% in April. On a year-over-year basis, Pending Home Sales are forecast to grow by 25% as they were under serious pressure in May 2020.

Technical Analysis

GBP/USD managed to settle below the support at 1.3865 and made an attempt to settle below the next support level at 1.3835. In case GBP/USD manages to settle below this level, it will head towards the next support which is located at 1.3800.

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

On the upside, the previous support level at 1.3865 will serve as the first resistance level for GBP/USD. In case GBP/USD manages to settle back above this level, it will head towards the resistance at 1.3900.

If GBP/USD gets above 1.3900, it will head towards the next resistance at 1.3920. A move above this level will push GBP/USD towards the resistance at 1.3950.

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