GBP/USD Tests Support At 1.2510

Key Insights

• The U.S. Dollar Index is testing new highs as rally continues. 
• Today, traders will focus on the economic data from the U.S. 
• A move below the support at 1.2510 will push GBP/USD towards the support level at 1.2485.

British Pound Is Losing Ground Against U.S. Dollar

GBP/USD is currently trying to settle below the support at 1.2510, while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index managed to settle above the resistance at 103.25 and made an attempt to settle above the next resistance level at 103.60. In case the U.S. Dollar Index settles above 103.60, it will move towards the next resistance at 103.80, which will be bearish for GBP/USD.

Today, foreign exchange market traders will focus on the economic data from the U.S. Analysts expect that the first-quarter GDP Growth Rate report will show that GDP increased by 1.1% on a quarter-over-quarter basis.

Initial Jobless Claims report is expected to show that 180,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to decrease from 1.42 million to 1.4 million.

Technical Analysis

GBP/USD is testing the support level at 1.2510. In case this test is successful, GBP/USD will move towards the next support, which is located at 1.2485.

A successful test of the support at 1.2485 will open the way to the test of the next support level at 1.2460. If GBP/USD declines below this level, it will move towards the support at 1.2440.

On the upside, the previous support level at 1.2530 will serve as the first resistance level for GBP/USD. If GBP/USD manages to settle back above this level, it will head towards the next resistance at 1.2565.

A successful test of the resistance at 1.2565 will push GBP/USD towards the resistance at 1.2600. In case GBP/USD moves above this level, it will head towards the resistance at 1.2640.

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