GBP/USD Tests Resistance At 1.3080

Key Insight

• GBP/USD is moving higher after an unsuccessful test of the support at 1.3050.
• UK house prices continue to grow at a fast pace. 
• A move above 1.3080 will push GBP/USD towards the resistance at 1.3110.

British Pound Tries To Rebound Against U.S. Dollar

GBP/USD is currently trying to settle back above the resistance at 1.3080, while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index is testing the support level at 99.45. In case this test is successful, the U.S. Dollar Index will move towards the next support at 99.20, which will be bullish for GBP/USD.

UK has recently released Halifax House Price Index report for March, which indicated that house prices increased by 1.4% month-over-month, compared to analyst forecast of 0.7%. On a year-over-year basis, house prices increased by 11%.

Today, foreign exchange market traders will also take a look at Initial Jobless Claims and Continuing Jobless Claims reports from the U.S. Analysts expect that Initial Jobless Claims report would show that 200,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to remain unchanged at 1.3 million.

Technical Analysis

GBP/USD is testing the resistance at 1.3080. If this test is successful, GBP/USD will move towards the next resistance, which is located at 1.3110.

A move above the resistance at 1.3110 will open the way to the test of the resistance at the 20 EMA at 1.3140. In case GBP/USD manages to settle above this level, it will move towards the resistance at 1.3175.

On the support side, a move below 1.3080 will push GBP/USD back towards the support at the recent lows at 1.3050. In case GBP/USD manages to settle below this level, it will head towards the next support level at 1.3030. A move below the support at 1.3030 will open the way to the test of the support at March lows at 1.3000.

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