GBP/USD Daily Forecast – Test Of Support At 1.3920

GBP/USD Video 22.04.21.

British Pound Is Mostly Flat Against U.S. Dollar

GBP/USD is currently trying to settle below the support at 1.3920 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index settled below 91.30 and made an attempt to get to the test of the support level at 91. In case the U.S. Dollar Index declines below 91, it will head towards the next support at 90.70 which will be bullish for GBP/USD.

Today, foreign exchange market traders will focus on the economic data from the U.S. Analysts expect that Initial Jobless Claims report will indicate that 617,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to decline from 3.73 million to 3.67 million. Existing Home Sales are projected to grow by 0.8% month-over-month in March after declining by 6.6% in February.

The recent economic data from the U.S. was strong, but it remains to be seen whether positive economic reports will be able to provide more support to the U.S. dollar as Treasury yields are moving lower which is bearish for the American currency.

Technical Analysis

GBP/USD did not manage to settle above the resistance at 1.3950 and is testing the nearest support level at 1.3920. In case this test is successful, GBP/USD will head towards the next support which is located at 1.3900.

If GBP/USD declines below 1.3900, it will move towards the next support at 1.3865. A move below this level will open the way to the test of the support which is located at the 20 EMA at 1.3845.

On the upside, GBP/USD needs to settle above the resistance at 1.3950 to continue its upside move. The next resistance level is located at 1.3980. In case GBP/USD manages to settle above the resistance at 1.3980, it will head towards the major resistance level at 1.4000. This resistance level has been recently tested and proved its strength. A successful test of the resistance at 1.4000 will push GBP/USD towards the resistance at 1.4020.

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