GBP/USD Daily Forecast – U.S. Dollar Attempts To Rebound Against British Pound

British Pound Is Moving Lower Against U.S. Dollar

GBP/USD is currently trying to settle back below the support at 1.3600 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index managed to get above the 94 level and is trying to settle above the next resistance at 94.20. In case this attempt is successful, it will head towards the resistance at the yearly highs at 94.50 which will be bearish for GBP/USD.

Yesterday, UK reported that Services PMI increased from 55 in August to 55.4 in September while analysts expected that it would decline to 54.6. In the U.S., Services PMI declined from 55.1 to 54.9 compared to analyst consensus of 54.4.

Today, foreign exchange market traders will focus on ADP Employment Change report from the U.S. The report is expected to show that private businesses added 428,000 jobs in September. Markets may be very sensitive to employment data from the U.S., so traders should be prepared for fast moves.

Technical Analysis

GBP/USD failed to settle above the resistance at 1.3635 and declined towards the support level which is located at 1.3600. In case GBP/USD declines below this support level, it will gain additional downside momentum and head towards the next support at 1.3575.

A move below the support at 1.3575 will open the way to the test of the \support level at 1.3550. In case GBP/USD manages to settle below 1.3550, it will head towards the next support at 1.3520.

On the upside, GBP/USD needs to settle above the 20 EMA which is located near 1.3635 to continue its rebound. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If GBP/USD settles above the 20 EMA, it will move towards the resistance level at 1.3665. A move above the resistance at 1.3665 will push GBP/USD towards the next resistance at 1.3690.

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