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GBP/USD Daily Forecast – Test Of Support At 1.3920

By:
Vladimir Zernov
Published: Jun 25, 2021, 06:24 UTC

GBP/USD declined below 1.3950 and is testing the support at 1.3920.

GBP/USD

In this article:

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 flat against a broad basket of currencies.

The U.S. Dollar Index is located near the resistance level at 91.80. If the U.S. Dollar Index manages to settle above this level, it will move towards the next resistance at 92 which will be bearish for GBP/USD.

UK has recently released Gfk Consumer Confidence report for June which indicated that Consumer Confidence remained unchanged at -9 compared to analyst consensus of -7. It looks that the extension of coronavirus-related measures has put some pressure on Consumer Confidence.

Today, foreign exchange market traders will also have a chance to take a look at the final reading of Consumer Confidence report from U.S. Analysts expect that Consumer Confidence improved from 82.9 in May to 86.5 in June.

Traders will also keep an eye on the developments in U.S. government bond markets. The yield of 10-year Treasuries is currently trying to settle back above the 1.50% level. In case this attempt is successful, it will move towards the 20 EMA at 1.52% which may provide additional support to the American currency.

Technical Analysis

gbp usd june 25 2021

GBP/USD managed to settle below the support at 1.3950 and is testing the next support level at 1.3920. If GBP/USD settles below this level, it will get to another test of the support at 1.3900.

A move below the support at 1.3900 will open the way to the test of the support which is located at 1.3865. In case GBP/USD declines below 1.3865, it will head towards the support at 1.3835.

On the upside, GBP/USD needs to stay above 1.3920 to have a chance to develop upside momentum in the near term. The next resistance level is located at 1.3950.

If GBP/USD manages to settle above 1.3950, it will head towards the resistance at 1.3980. A move above this level will push GBP/USD towards the resistance at the 20 EMA at 1.4000. In case GBP/USD gets above the 20 EMA, it will head towards the 50 EMA which is located at 1.4020.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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