GBP/USD Daily Forecast – U.S. Dollar Tries To Gain More Ground As Treasury Yields Rise
GBP/USD Video 30.03.21.
U.S. Dollar Attempts To Gain More Upside Momentum
GBP/USD has recently made an attempt to settle above the resistance at 1.3780 but failed to develop sufficient upside momentum while the U.S. dollar remained flat against a broad basket of currencies.
The U.S. Dollar Index is currently trying to get to the test of the resistance level at 93. If the U.S. Dollar Index manages to settle above this level, it will move towards the next resistance at 93.20 which will be bearish for GBP/USD.
Today, foreign exchange market traders will focus on CB Consumer Confidence report from the U.S. Analysts expect that Consumer Confidence increased from 91.3 in February to 96.9 in March.
Traders will also monitor the developments in the U.S. government bond markets. The yield of 10-year Treasuries managed to climb back to multi-month highs near 1.75% which is bullish for the U.S. dollar. If Treasury yields settle above recent highs, they will gain additional upside momentum.
GBP/USD declined below the support at 1.3780 and is slowly moving towards the next support level which is located at 1.3745. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
In case GBP/USD declines below the support level at 1.3745, it will head towards the next support at 1.3710. A move below the support at 1.3710 will open the way to the test of the support at 1.3665. The previous pullback was stopped near this support level, so I’d expect increased interest from traders if GBP/USD gets closer to 1.3665.
On the upside, the nearest resistance level is located at 1.3780. In case GBP/USD gets above this level, it will head towards the resistance at 1.3800. A successful test of the resistance at 1.3800 will push GBP/USD towards the next resistance at the 50 EMA at 1.3820. A move above the 50 EMA will open the way to the test of the resistance at the 20 EMA at 1.3830.
For a look at all of today’s economic events, check out our economic calendar.