GBP/USD Tests Resistance At 1.3030

Key Insights

• GBP/USD received strong support near 1.3000.
• Today, traders will focus on UK job market data and U.S. Producer Prices reports.
• A successful test of the resistance at 1.3030 will push GBP/USD towards the resistance at 1.3050.

British Pound Rebounds 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 failed to settle above the resistance at 99.20 and declined below the support level at 99. The next support level for the U.S. Dollar Index is located at 98.70. In case the U.S. Dollar Index manages to settle below this level, it will move towards the support at 98.35, which will be bullish for GBP/USD.

Today, foreign exchange market traders will take a look at the job market data from the UK. Claimant Count Change report is expected to show that the number of people claiming unemployment benefits decreased by 25,000 in February. Unemployment Rate is expected to decline from 4.1% in December to 4% in January.

In the U.S., traders will focus on the Producer Prices report. Analysts expect that Producer Prices increased by 0.9% month-over-month in February. On a year-over-year basis, Producer Prices are expected to grow by 10%.

Technical Analysis

GBP/USD is testing the resistance level at 1.3030. In case GBP/USD manages to settle above this level, it will move towards the next resistance at 1.3050.

A successful test of the resistance at 1.3050 will open the way to the test of the next resistance level at 1.3080. If GBP/USD gets above this level, it will move towards the resistance at 1.3110.

On the support side, a move below 1.3030 will push GBP/USD towards the support at the recent lows at 1.3000. This support level has already been tested several times and proved its strength.

If GBP/USD declines below the support at 1.3000, it will head towards the next support level at 1.2970. A successful test of this level will push GBP/USD towards the support at 1.2940.

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