GBP/USD Daily Forecast – U.S. Dollar Gains Some Ground Against British Pound

British Pound Moves Lower Against U.S. Dollar

GBP/USD is currently trying to settle below the support level at 1.3745 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index has recently made another attempt to settle below the support at the 20 EMA at 92.85 but failed to develop sufficient downside momentum and rebounded back above 92.90. In case the U.S. Dollar Index settles above the 93 level, it will head towards the resistance at 93.10 which will be bearish for GBP/USD.

Today, foreign exchange market traders will focus on the economic data from U.S. Initial Jobless Claims report is projected to show that 350,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are expected to decline from 2.82 million to 2.79 million.

Traders will also have a chance to take a look at the second estimate of the second-quarter GDP Growth Rate report. Analysts expect that GDP grew by 6.7% quarter-over-quarter.

Technical Analysis

GBP/USD made an attempt to settle above the resistance at the 20 EMA at 1.3770 but failed to develop sufficient upside momentum and pulled back towards the support level at 1.3745. Currently, GBP/USD is trying to move below this support level. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

In case GBP/USD manages to settle below 1.3745, it will head towards the next support level which is located at 1.3710. A move below this level will open the way to the test of the support at 1.3690.

If GBP/USD declines below 1.3690, it will head towards the next support at 1.3665. A successful test of the support at 1.3665 will push GBP/USD towards the support at 1.3635.

On the upside, the nearest resistance level for GBP/USD is located at the 20 EMA at 1.3770. A move above the 20 EMA will lead to the test of the resistance at 1.3780.

If GBP/USD settles above 1.3780, it will head towards the next resistance level at 1.3800. A successful test of this level will push GBP/USD towards the 50 EMA at 1.3820.

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