GBP/USD Remains Under Pressure Ahead Of U.S. Inflation Data

Key Insights

• Traders are waiting for the release of the ultra-important U.S. inflation data. 
• GBP/USD will be sensitive to the news, so traders should be prepared for fast moves. 
• A successful test of the support at 1.3000 will open the way to the test of the next support at 1.2970.

British Pound Is Losing Ground Against U.S. Dollar

GBP/USD continues its attempts to settle below the support at 1.3000, while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index managed to get above the 100 level and is moving towards the next resistance at 100.30. In case the U.S. Dollar Index gets to the test of this level, GBP/USD will find itself under more pressure.

UK has recently released Claimant Count Change report for March, which indicated that the number of people claiming unemployment benefits declined by 46,900. UK Unemployment Rate decreased from 3.9% in January to 3.8% in February, in line with the analyst consensus.

The main event of the day for foreign exchange market traders is the release of inflation data from the U.S. Analysts expect that Inflation Rate grew by 1.2% month-over-month in March. On a year-over-year basis, Inflation Rate is projected to grow by 8.4%. Core Inflation Rate is expected to increase by 6.6% on a year-over-year basis.

Technical Analysis

GBP/USD is testing the support level at 1.3000. In case this test is successful, GBP/USD will move towards the next support level, which is located at 1.2970.

A successful test of the support at 1.2970 will push GBP/USD towards the support at 1.2940. If GBP/USD declines below this level, it will move towards the next support level at 1.2915.

On the upside, the nearest resistance level for GBP/USD is located at 1.3030. If GBP/USD climbs above this level, it will head towards the next resistance at 1.3050. A move above 1.3050 will push GBP/USD towards the resistance at 1.3080.

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