GBP/USD Daily Forecast – U.S. Dollar Gains Ground Ahead Of The Weekend
GBP/USD Video 30.04.21.
British Pound Moves Lower Against U.S. Dollar
GBP/USD is currently trying to settle below the support at 1.3950 while the U.S. dollar is mostly flat against a broad basket of currencies.
The U.S. Dollar Index continues its attempts to settle above the resistance at 90.70. If the U.S. Dollar Index manages to settle above this level, it will move towards the resistance at 91 which will be bearish for GBP/USD.
The UK has just reported that Nationwide Housing Prices increased by 2.1% month-over-month in April compared to analyst consensus which called for growth of 0.5%. On a year-over-year basis, Nationwide Housing Prices grew by 7.1% compared to consensus of 5%.
Foreign exchange market traders will also have a chance to take a look at the economic data from the U.S. Anaysts expect that Personal Income increased by 20.3% month-over-month in March thanks to the new round of stimulus. Personal Spending is projected to grow by 4.1%.
The U.S. will also release the final reading of Michigan Consumer Sentiment report which is expected to show that Consumer Sentiment improved from 84.9 in March to 87.4 in April.
GBP/USD failed to settle above the resistance at 1.3950 and is slowly moving towards the support at 1.3920. If GBP/USD declines below the support at 1.3920, it will head towards the next support level which is located at 1.3900.
A move below the support at 1.3900 will open the way to the test of the support at the 20 EMA at 1.3880. If GBP/USD declines below this level, it will head towards the next support at 1.3865.
On the upside, GBP/USD needs to settle above the resistance at 1.3950 to have a chance to develop upside momentum in the near term. The next resistance level for GBP/USD is located at 1.3980.
If GBP/USD gets above the resistance at 1.3980, it will get to the test of the major resistance level at 1.4000. A successful test of this level will push GBP/USD towards the resistance at 1.4020.
For a look at all of today’s economic events, check out our economic calendar.