GBP/USD Rebounds After An Unsuccessful Test Of The Support At 1.3000

Key Insights

• GBP/USD received strong support near the 1.3000 level and is trying to gain upside momentum. 
• Today, traders will focus on the Existing Home Sales report from the U.S. 
• A successful test of the resistance at 1.3030 will push GBP/USD towards the next resistance at 1.3050.

British Pound Gains Ground Against U.S. Dollar

GBP/USD is currently trying to settle back above the resistance at 1.3030, while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index faced resistance near the 101 level and moved below the support at 100.85. In case the U.S. Dollar Index settles below this support level, it will head towards the next support at 100.50, which will be bullish for GBP/USD.

Today, foreign exchange market traders will have a chance to take a look at the Existing Home Sales report from the U.S. Analysts expect that Existing Home Sales declined by 2% month-over-month in March after falling by 7.2% in February.

Traders will pay close attention to the health of the housing market amid rising Treasury yields, which make mortgages more expensive for consumers.

Technical Analysis

GBP/USD did not manage to settle below the support at 1.3000 and is testing the resistance at 1.3030. In case this test is successful, GBP/USD will head towards the next resistance level, which is located at 1.3050.

A move above the resistance at 1.3050 will open the way to the test of the next resistance level at the 20 EMA at 1.3070. In case GBP/USD manages to settle above the 20 EMA, it will gain additional upside momentum and head towards the resistance at 1.3110.

On the support side, the nearest support level for GBP/USD is located at 1.3000. In case GBP/USD gets below this level, it will move towards the next support level near yearly lows at 1.2970. A successful test of the support at 1.2970 will push GBP/USD towards the next support level at 1.2940.

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