GBP/USD Tests Support At 1.3335

Key Insights

• Demand for safe-haven assets stays strong, which is bullish for the U.S. dollar. 
• Traders will focus on geopolitical news and job market reports from the U.S.
• A successful test of the support at 1.3335 will push GBP/USD towards the support level at 1.3300.

British Pound Is Moving Lower Against U.S. Dollar

GBP/USD is currently trying to settle below the support at 1.3335, while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get above the 98 level and is currently trying to develop additional upside momentum. In case this attempt is successful, the U.S. Dollar Index will move towards the resistance at 98.35, which will be bearish for GBP/USD.

Today, foreign exchange market traders will focus on the job market data from the U.S.  Non Farm Payrolls report is expected to show that the U.S. economy added 400,000 jobs in February. Unemployment Rate is projected to decline from 4% in January to 3.9% in February.

Traders will also continue to monitor geopolitical developments. Yesterday’s negotiations between Russia and Ukraine yielded little progress. As a result, demand for safe-haven assets increased, which was bullish for the American currency.

Technical Analysis

GBP/USD is testing the support level at 1.3335. If this test is successful, GBP/USD will move towards the next support at 1.3300.

A successful test of the support at 1.3300 will push GBP/USD towards the next support level at the recent lows at 1.3275. In case GBP/USD declines below this level, it will head towards the next support at 1.3250.

On the upside, a move above 1.3335 will push GBP/USD towards the resistance level at 1.3365. If GBP/USD gets above this level, it will move towards the next resistance at 1.3390. A successful test of this level will push GBP/USD towards the resistance at 1.3420.

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