Vladimir Zernov
Add to Bookmarks

GBP/USD Video 02.06.21.

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

GBP/USD is currently trying to settle below the support at 1.4150 while the U.S. dollar is mostly flat against a broad basket of currencies.

Know where GBP/USD is headed? Take advantage now with 

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 slowly moving towards the nearest resistance level at 90. If the U.S. Dollar Index manages to settle back above this level, it will head towards the 20 EMA at 90.20 which will be bearish for GBP/USD.

Yesterday, UK reported that Manufacturing PMI increased from 60.9 in April to 65.6 in May compared to analyst consensus of 66.1. In the U.S., Manufacturing PMI improved from 60.5 to 62.1 compared to analyst consensus of 61.5.

There are no important economic reports scheduled to be released in the U.S. and UK today so foreign exchange market traders will focus on general market sentiment and developments in U.S. government bond markets.

The yields of 10-year Treasuries have recently made an attempt to settle above the 20 EMA at 1.61% but failed to develop sufficient upside momentum and pulled back. The nearest significant support level is located at the 50 EMA at 1.58%. If 10-year Treasury yields get to the test of this level, the U.S. dollar may find itself under pressure.


Technical Analysis

GBP/USD managed to settle below the support at 1.4180 and is testing the next support level at 1.4150. In case this test is successful, GBP/USD will head towards the next support which is located at the 20 EMA at 1.4125.

A move below the 20 EMA will open the way to the test of the support at 1.4100. If GBP/USD declines below the support at 1.4100, it will head towards the next support at 1.4080.

On the upside, the previous support level at 1.4180 will serve as the first resistance level for GBP/USD. If GBP/USD gets above this level, it will head towards the next resistance at 1.4200. A successful test of this level will push GBP/USD towards the resistance at the recent highs at 1.4240.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker