GBP/USD Daily Forecast – U.S. Dollar Rebounds Against British Pound

British Pound Pulls Back Against U.S. Dollar

GBP/USD is currently trying to settle below the support at 1.3250 while U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get back above 96.50 and is moving towards the resistance level at 96.70. In case the U.S. Dollar Index manages to get above the resistance at 96.70, it will move towards the next resistance level at 97 which will be bearish for GBP/USD.

UK has recently released the final reading of the third-quarter UK GDP Growth Rate report. The report indicated that GDP grew by 1.1% quarter-over-quarter compared to analyst consensus which called for growth of 1.3%.

Today, traders will also have a chance to take a look at the final reading of the third-quarter U.S. GDP Growth Rate report. Analysts expect that U.S. GDP increased by 2.1% on a quarter-over-quarter basis.

Traders will also focus on CB Consumer Confidence report for December which is expected to show that Consumer Confidence improved from 109.5 in November to 110.8 in December.

Technical Analysis

GBP/USD failed to settle above the 20 EMA at 1.3275 and is trying to get below the nearest support level which is located at 1.3250. In case this attempt is successful, GBP/USD will move towards the next support at 1.3230.

A successful test of the support at 1.3230 will push GBP/USD towards the next support level at 1.3200. In case GBP/USD manages to settle below the support at 1.3200, it will gain additional downside momentum and move towards the next support level at the recent lows at 1.3170.

On the upside, GBP/USD needs to settle above the 20 EMA to have a chance to continue its rebound. If GBP/USD gets above the 20 EMA at 1.3275, it will head towards the resistance at 1.3310. A successful test of this resistance level will push GBP/USD towards the next resistance level which is located at 1.3340.

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