GBP/USD Daily Forecast – Test Of Support At 1.4100

GBP/USD Video 27.05.21.

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

GBP/USD is testing the nearest support level at 1.4100 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle above the resistance at the 90 level. If the U.S. Dollar Index settles above this level, it will head towards the resistance at 90.30 which will be bearish 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 425,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to decline from 3.75 million to 3.68 million.

Analysts forecast that Durable Goods Orders increased by 0.7% month-over-month in April after growing by 0.5% in March. Pending Home Sales are expected to grow by 0.8% month-over-month in April.

Traders will also have a chance to take a look at the second estimate of the first-quarter GDP Growth Rate. The report is projected to show that GDP increased by 6.5% on a quarter-over-quarter basis.

Technical Analysis

GBP/USD is currently trying to settle below the support at 1.4100. In case this attempt is successful, GBP/USD will move towards the next support level which is located at the 20 EMA at 1.4085. 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 the 20 EMA, it will move towards the next support level at 1.4050. A successful test of this level will push GBP/USD towards the support at 1.4020.

On the upside, the nearest resistance level for GBP/USD is located at 1.4150. If GBP/USD gets back above this level, it will move towards the next resistance at 1.4180. A successful test of the resistance at 1.4180 will open the way to the test of the next resistance level which is located at 1.4200.

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