GBP/USD Tests Resistance At 1.3175

Key Insights

• GBP/USD attempts to continue its rebound. 
• Traders will focus on the U.S. inflation data. 
• A move above 1.3175 will push GBP/USD towards the resistance at 1.3200.

British Pound Tries To Gain More Ground Against U.S. Dollar

GBP/USD is currently trying to settle back above the resistance at 1.3175, while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get back above the 98 level and is trying to gain additional upside momentum. In case this attempt is successful, the U.S. Dollar Index will head towards the resistance at 98.35, which will be bearish for GBP/USD.

Today, foreign exchange market traders will focus on the inflation data from the U.S. Analysts expect that Inflation Rate increased by 0.8% month-over-month in February. On a year-over-year basis, Inflation Rate is projected to grow by 7.9%. Core Inflation Rate is expected to increase by 6.4% year-over-year.

Traders will also take a look at the Initial Jobless Claims report, which is expected to show that 216,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are expected to decline from 1.48 million to 1.47 million.

Technical Analysis

GBP/USD is testing the resistance level at 1.3175. In case this test is successful, GBP/USD will move towards the next resistance level at 1.3200.

A move above the resistance at 1.3200 will open the way to the test of the resistance at 1.3230. If GBP/USD gets above this level, it will head towards the resistance level at 1.3250. A successful test of the resistance at 1.3250 will push GBP/USD towards the resistance at 1.3275.

On the support side, a move below 1.3175 will push GBP/USD towards the support level at 1.3135. In case GBP/USD settles back below this level, it will head towards the support at 1.3110. A successful test of the support at 1.3110 will open the way to the test of the support at 1.3080.

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