GBP/USD Daily Forecast – U.S. Dollar Moves Higher Ahead Of The Weekend

British Pound Is Losing Ground Against U.S. Dollar

GBP/USD is currently trying to get below 1.3600 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index managed to get back above 94.20 and is slowly moving towards the resistance level which is located at yearly highs at 94.50. In case the U.S. Dollar Index gets to the test of this level, GBP/USD will find itself under more pressure.

Today, foreign exchange market traders will focus on the economic data from U.S. Analysts expect that Non Farm Payrolls report will indicate that the economy added 500,000 jobs in September. It should be noted that the recent ADP Employment Change report exceeded analyst expectations, but Non Farm Payrolls numbers often differ from ADP Employment Change data.

Traders will also take a look at Unemployment Rate report which is projected to show that Unemployment Rate declined from 5.2% in August to 5.1% in September.

I’d also note that the yield of 10-year Treasuries has managed to settle above the resistance at 1.56% and made an attempt to get above 1.60%. If the yield of 10-year Treasuries settles above 1.60%, the U.S. dollar will get more support.

Technical Analysis

GBP/USD faced significant resistance near the 20 EMA at 1.3635 and is trying to settle below the support level at 1.3600. In case this attempt is successful, GBP/USD will move towards the next support at 1.3575.

A successful test of the support at 1.3575 will open the way to the test of the next support level at 1.3550. If GBP/USD declines below this level, it will head towards the support at 1.3520.

On the upside, GBP/USD needs to stay above 1.3600 to have a chance to develop upside momentum in the near term. The next resistance level is located at the 20 EMA at 1.3635.

If GBP/USD gets above the 20 EMA, it will head towards the resistance at 1.3665. A move above this level will push GBP/USD towards the resistance at 1.3690.

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