GBP/USD Daily Forecast – U.S. Dollar Remains Under Pressure

British Pound Continues To Move Higher Against U.S. Dollar

GBP/USD is currently trying to settle above the resistance at 1.3800 while the U.S. dollar is under pressure against a broad basket of currencies.

The U.S. Dollar Index is testing the support level at the 50 EMA at 92.45. In case this test is successful, the U.S. Dollar Index will move towards the support at 92.30 which will be bullish for GBP/USD.

There are no important economic reports scheduled to be released in the UK today so foreign exchange market traders will focus on the economic data from U.S.

Analysts expect that CB Consumer Confidence report will show that Consumer Confidence declined from 129.1 in July to 124 in August. This report may have a material impact on currency dynamics as it will show whether the spread of the Delta variant of coronavirus has put significant pressure on consumer’s mood or the impact was minimal.

Traders will also have a chance to take a look at Case-Shiller Home Price report for June which is projected to show that home prices increased by 18.5% on a year-over-year basis.

Technical Analysis

GBP/USD managed to settle above the resistance at 1.3780 and is testing the next resistance level at 1.3800. In case this test is successful, GBP/USD will head towards the next resistance which is located at the 50 EMA at 1.3815.

A move above the resistance at 1.3815 will open the way to the test of the resistance at 1.3835. In case GBP/USD manages to settle above this level, it will head towards the next resistance at 1.3875.

On the support side, the previous resistance level at 1.3780 will serve as the first support level for the U.S. dollar. A move below 1.3780 will open the way to the test of the support at the 20 EMA at 1.3765.

In case GBP/USD settles below the 20 EMA, it will get to the test of the next support at 1.3745. A successful test of the support at 1.3745 will push GBP/USD towards the support at 1.3710.

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