GBP/USD Tests Resistance At 1.3600

British Pound Moves Higher Against U.S. Dollar

GBP/USD is currently trying to settle back above 1.3600 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index managed to get back above the 96 level. If the U.S. Dollar Index stays above this level, it will have a chance to gain upside momentum and move towards the resistance at 96.25, which will be bearish for GBP/USD.

There are no important economic reports scheduled to be released in the U.S. and U.K. today so foreign exchange market traders will focus on geopolitics and general market sentiment.

There’s some optimism in the equity markets today, and S&P 500 futures are moving higher in premarket trading. At the same time, the safe-haven dollar gets some support, so it remains to be seen whether the potential increase in risk appetite will have an impact on the dynamics of the American currency.

Technical Analysis

GBP/USD managed to settle back above 1.3575 and is testing the next resistance level at 1.3600. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If GBP/USD manages to settle above 1.3600, it will head towards the next resistance level, which is located at 1.3625. A move above 1.3625 will open the way to the test of the resistance at 1.3650. In case GBP/USD gets above this level, it will continue its rebound and head towards the resistance at 1.3690.

On the support side, GBP/USD must stay below 1.3600 to have a chance to gain downside momentum in the near term. The nearest support level for GBP/USD is located at 1.3575.

If GBP/USD declines below the support at 1.3575, it will get to the test of the next support level at the 20 EMA at 1.3565. A move below the 20 EMA will push GBP/USD towards the 50 EMA at 1.3535. In case GBP/USD gets below this level, it will head towards the next support at 1.3490.

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