GBP/USD Daily Forecast – Test Of Support At 1.3835

GBP/USD Video 23.03.21.

British Pound Remains Under Pressure Against U.S. Dollar

GBP/USD is currently trying to settle below the support at the 50 EMA at 1.3835 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index failed to settle below the support at 91.75 and is moving towards the resistance at the 92 level. The U.S. Dollar Index has made several attempts to settle above 92 in recent trading sessions but failed to develop sufficient upside momentum. In case the U.S. Dollar Index manages to settle above 92, it will head towards the next resistance at 92.25 which will be bearish for GBP/USD.

Today, foreign exchange market traders will focus on the economic data from the UK. Unemployment Rate report is projected to show that Unemployment Rate increased from 5.1% in December to 5.2% in January. Meanwhile, Claimant Count Change report is expected to indicate that the number of workers claiming for unemployment benefits declined by 17,000 in February.

Technical Analysis

GBP/USD is currently testing the nearest support level at the 50 EMA at 1.3835. In case GBP/USD manages to settle below this level, it will head towards the next support at 1.3800. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

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

On the upside, GBP/USD must stay above the 50 EMA to have a chance to develop upside momentum in the near term. The next resistance level is located at 1.3865.

In case GBP/USD manages to settle above this level, it will head towards the resistance at the 20 EMA at 1.3895. A move above this level will push GBP/USD towards the resistance at 1.3950.

No material levels were formed between 1.3895 and 1.3950 so this move may be fast. If GBP/USD gets above the resistance at 1.3950, it will head towards the next resistance at 1.3980.

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