GBP/USD Is Losing Ground Ahead Of The Weekend

Key Insights

• GBP/USD is moving lower ahead of the release of the final reading of UK Manufacturing PMI report. 
• The main event of the day for traders is the release of U.S. Non Farm Payrolls report, which will have a material impact on currency dynamics. 
• A move below the support at 1.3110 will push GBP/USD towards the next support level at 1.3080.

British Pound Is Losing Ground Against U.S. Dollar

GBP/USD is moving towards the support level at 1.3110, while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index managed to get above the resistance at 98.35 and is trying to settle above 98.50. In case this attempt is successful, the U.S. Dollar Index will move towards the resistance at 98.70, which will be bearish for GBP/USD.

Today, foreign exchange market traders will have a chance to take a look at the final reading of the Manufacturing PMI report from the UK. Analysts expect that Manufacturing PMI declined from 58 in February to 55.5 in March.

In the U.S., traders will focus on the Non Farm Payrolls report from the U.S. The report is expected to show that American economy added 490,000 jobs in March. Unemployment Rate is expected to decline from 3.8% in February to 3.7% in March.

Technical Analysis

GBP/USD is trying to get to the test of the nearest support level at 1.3110. If GBP/USD manages to settle below this level, it will head towards the support at 1.3080. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

A successful test of the support level at 1.3080 will open the way to the test of the next support at 1.3050. In case GBP/USD settles below the support at 1.3050, it will head towards the next support at 1.3030.

On the upside, the nearest resistance level for GBP/USD is located at 1.3140. If GBP/USD settles above this level, it will move towards the next resistance at the 20 EMA near 1.3175.

A move above the 20 EMA will open the way to the test of the resistance at 1.3200. In case GBP/USD climbs above 1.3200, it will head towards the resistance at 1.3230.

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