GBP/USD Daily Forecast – U.S. Dollar Continues To Gain Ground Against British PoundGBP/USD is testing the support level at 1.3800.
GBP/USD Video 07.04.21.
British Pound Is Under Some Pressure Against U.S. Dollar
GBP/USD is currently trying to settle below the support at 1.3800 while the U.S. dollar is mostly flat against a broad basket of currencies.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
The U.S. Dollar Index is testing the support level at the 20 EMA at 92.35. In case this test is successful, the U.S. Dollar Index will move towards the next support level at 92.15 which will be bullish for GBP/USD.
Today, foreign exchange market traders will have a chance to take a look at the final reading of UK Services PMI report for March. Analysts expect that Services PMI increased from 49.5 to 56.8 as successful mass vaccination program and a plan to gradually lift virus-related restrictions provided support to the UK economy.
Traders will also keep an eye on the latest developments in U.S. government bond markets. Yesterday, Treasury yields moved lower, which was bearish for the American currency. If this pullback continues, the U.S. dollar will find itself under more pressure which will be bullish for GBP/USD.
GBP/USD is currently testing the nearest support level at 1.3800. In case this test is successful, GBP/USD will get to the test of the next support level at 1.3780.
A move below the support at 1.3780 will open the way to the test of the next support at 1.3745. If GBP/USD declines below this level, it will move towards the support at 1.3710.
On the upside, the nearest resistance level for GBP/USD is located at the 50 EMA at 1.3820. If GBP/USD manages to settle above this level, it will head towards the next resistance which is located at the 20 EMA at 1.3835.
A successful test of the resistance at the 20 EMA at 1.3835 will open the way to the test of the next resistance at 1.3865. In case GBP/USD settles above this level, it will move towards the next resistance at 1.3900. This resistance level has been tested during recent trading sessions and proved its strength.
For a look at all of today’s economic events, check out our economic calendar.