Vladimir Zernov
Add to Bookmarks

GBP/USD Video 05.04.21.

Test Of Support At 1.3820

GBP/USD is currently trying to settle below the support at the 50 EMA at 1.3820 while the U.S. dollar is gaining ground against a broad basket of currencies.

Know where GBP/USD is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

The U.S. Dollar Index managed to get back above the 93 level and is moving towards the resistance at 93.20. If the U.S. Dollar Index gets to the test of this level, GBP/USD will find itself under more pressure.

On Friday, U.S. provided Non Farm Payrolls report which indicated that the U.S. economy added 916,000 jobs in March. The report exceeded analyst consensus of 647,000. Unemployment Rate declined from 6.2% in February to 6% in March. The strong recovery of the U.S. job market pushed Treasury yields higher and provided support to the American currency.

Today, foreign exchange market traders will focus on the final reading of U.S. Services PMI report. Analysts expect that Services PMI increased from 59.8 in February to 60 in March as the services segment continued to recover from the blow dealt by the coronavirus pandemic.


Technical Analysis

GBP/USD is currently testing the support level at the 50 EMA at 1.3820. In case this test is successful, GBP/USD will head towards the next support at 1.3800. RSI is in the moderate territory, and there is plenty of room to gain downside momentum in case the right catalysts emerge.

In case GBP/USD declines below the support at 1.3800, it will move towards the next support level at 1.3780. A move below the support at 1.3780 will open the way to the test of the next support which is located at the recent lows at 1.3745.

On the upside, GBP/USD must settle above the 50 EMA at 1.3820 and the 20 EMA at 1.3825 to have a chance to develop upside momentum in the near term. The next resistance level for GBP/USD is located at 1.3865. If GBP/USD manages to settle above this level, it will head towards the next resistance at 1.3900. A move above this level will push GBP/USD towards the resistance at 1.3950.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker