GBP/USD Daily Forecast – U.S. Dollar Moves Higher Against British Pound
British Pound Declines Against U.S. Dollar
GBP/USD is currently trying to settle back below the support at 1.3745 while the U.S. dollar is moving higher against a broad basket of currencies.
The U.S. Dollar Index is testing the resistance level at the 20 EMA at 92.80. In case the U.S. Dollar Index manages to settle above the 20 EMA, it will gain additional upside momentum and head towards the next resistance at 93.10 which will be bearish for GBP/USD.
UK has recently reported that Nationwide Housing Prices increased by 2.1% month-over-month in August compared to analyst consensus which called for growth of just 0.2%. On a year-over-year basis, Nationwide Housing Prices increased by 11%. In the U.S., Case-Shiller Home Price report indicated that home prices grew by 19.1% year-over-year in June. Housing prices continue to grow at a fast pace, which is not surprising given the rampant money-printing.
Today, foreign exchange market traders will also have a chance to take a look at the final reading of UK Manufacturing PMI report for August. Analysts expect that Manufacturing PMI declined from 60.4 in July to 60.1 in August.
GBP/USD managed to get below the 20 EMA at 1.3760 and is trying to settle below the next support level at 1.3745. In case this attempt is successful, GBP/USD will move towards the next support at 1.3710.
A successful test of this support level will open the way to the test of the next support at 1.3690. In case GBP/USD declines below 1.3690, it will head towards the support at 1.3665. A move below 1.3665 will push GBP/USD towards the support at 1.3635.
On the upside, a move above the 20 EMA at 1.3760 will open the way to the test of the resistance level at 1.3780. In case GBP/USD manages to settle above 1.3780, it will head towards the next resistance at 1.3800. A successful test of the resistance at 1.3800 will lead to the test of the next resistance which is located at the 50 EMA at 1.3810.
For a look at all of today’s economic events, check out our economic calendar.