GBP/USD Tests Resistance At 1.3225

Key Insights

• Demand for safe-haven assets stays strong, but the British pound is trying to gain some ground against the American currency. 
• Geopolitical developments will remain the key driver for markets this week. 
• A move above 1.3225 will push GBP/USD towards the resistance level at 1.3250.

British Pound Tries To Rebound Against U.S. Dollar

GBP/USD is currently trying to settle back above the resistance at 1.3225, while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle above the 99 level. In case this attempt is successful, the U.S. Dollar Index will get to the test of the next resistance level at 99.20, which will be bearish for GBP/USD.

Today, foreign exchange market traders will take a look at the Halifax House Price Index report from the UK. The report indicated that house prices increased by 0.5% month-over-month in February, compared to analyst consensus of 0.6%. On a year-over-year basis, house prices increased by 10.8%.

Traders will also stay focused on the geopolitical developments, as the third round of negotiations between Russia and Ukraine is set to begin today. Markets remain nervous, and the rush to safe-haven assets continues, which is bullish for the U.S. dollar.

Technical Analysis

GBP/USD is testing the resistance level at 1.3225. In case this test is successful, GBP/USD will move towards the next resistance at 1.3250.

A move above the resistance at 1.3250 will open the way to the test of the resistance at 1.3275. In case GBP/USD manages to settle above this level, it will head towards the next resistance level at 1.3300.

On the support side, the nearest support level for GBP/USD is located at 1.3200. If GBP/USD declines below this level, it will head towards the support at 1.3175.

A successful test of the support at 1.3175 will push GBP/USD towards the support at 1.3135. In case GBP/USD manages to settle below this level, it will head towards the next support at 1.3110.

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