GBP/USD Tests Support At 1.3300

Key Insights

• GBP/USD remains under pressure as demand for safe-haven assets stays strong.
• ADP Employment Change report from the U.S. may have an impact on currency dynamics today.
• A move below 1.3300 will push GBP/USD towards the support level at 1.3275.

British Pound Is Losing Ground Against U.S. Dollar

GBP/USD is currently trying to settle below the support at 1.3300, 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 97.50. If the U.S. Dollar Index manages to get above this level, it will move towards the next resistance near yearly highs at 97.75, which will be bearish for GBP/USD.

Today, foreign exchange market traders will have a chance to take a look at ADP Employment Change report from the U.S. Analysts expect that the report will indicate that private businesses created 388,000 jobs in February.

While the jobs report may have an impact on currency dynamics, traders will likely stay focused on the geopolitical developments. The second round of negotiations between Russia and Ukraine may start today, but it is not clear whether both sides are ready to meet again. In case these negotiations do not begin, demand for safe-haven assets will increase, which will be bullish for the American currency.

Technical Analysis

GBP/USD is currently testing the support level at 1.3300. In case this test is successful, GBP/USD will move towards the next support level, which is located at 1.3275.

A move below the support at 1.3275 will open the way to the test of the support at 1.3250. If GBP/USD declines below this level, it will head towards the support at 1.3225.

On the upside, a move above 1.3300 will push GBP/USD towards the resistance at 1.3335. In case GBP/USD manages to settle above this level, it will head towards the next resistance at 1.3365. A successful test of the resistance at 1.3365 will open the way to the test of the next resistance at 1.3390.

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