GBP/USD Tests Support At 1.2730

Key Insights

• The U.S. Dollar Index stays close to yearly highs as rally continues. 
• Today, traders will focus on economic reports from the U.S. 
• A move below the support at 1.2730 will push GBP/USD towards the next support level at 1.2710.

British Pound Remains Under Pressure

GBP/USD is trying to settle below the support at 1.2730, while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle above the resistance level at 101.75. In case the U.S. Dollar Index manages to settle above this level, it will get to the test of the next resistance at 101.90, 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 Durable Goods Orders increased by 1% month-over-month in March after falling by 2.2% in February.

Case-Shiller Home Price Index report is expected to show that home prices increased by 19% year-over-year in February. New Home Sales are projected to decline by 0.5% month-over-month in March.

Traders will also have a chance to take a look at the CB Consumer Confidence report for April, which is expected to show that Consumer Confidence increased from 107.2 to 108.

Technical Analysis

GBP/USD is testing the support level at 1.2730. In case this test is successful, GBP/USD will move towards the next support level, which is located at 1.2710.

A move below the support at 1.2710 will open the way to the test of the next support level near the recent lows at 1.2690. If GBP/USD declines below this level, it will head towards the support at 1.2670.

On the upside, the nearest resistance level for GBP/USD is located at 1.2770. This resistance level has been tested and proved its strength.

A move above the resistance at 1.2770 will push GBP/USD towards the next resistance at 1.2800. In case GBP/USD manages to settle back above this level, it will head towards the resistance at 1.2825.

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