GBP/USD Tests Support At 1.3575
British Pound Pulls Back Against U.S. Dollar
GBP/USD is currently trying to settle below the support level at the 20 EMA at 1.3575 while U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index has recently made an attempt to settle above the 20 EMA at 95.70 but failed to develop sufficient upside momentum and pulled back. The nearest support level for the U.S. Dollar Index is located at the 50 EMA at 95.60. In case the U.S. Dollar Index declines below this level, it will move towards the next support at 95.40 which will be bullish for GBP/USD.
Today, foreign exchange market traders will focus on the economic data from UK. The country has already released Gfk Consumer Confidence report for January which indicated that Consumer Confidence declined from -15 in December to -19 in January compared to analyst consensus of -15.
Traders will also have a chance to take a look at UK Retail Sales data for December. Analysts expect that Retail Sales declined by 0.6% month-over-month in December after growing by 1.4% in November.
GBP/USD is currently testing the support level at 1.3575. In case GBP/USD declines below this level, it will head towards the next support level which is located at 1.3535. RSI is in the moderate territory, and there is enough room to gain additional downside momentum in case the right catalysts emerge.
A successful test of the support at 1.3535 will push GBP/USD towards the next support at the 50 EMA at 1.3510. In case GBP/USD declines below the 50 EMA, it will head towards the next support level at 1.3490.
On the upside, the previous support at 1.3600 will serve as the first resistance level for GBP/USD. A move above this level will push GBP/USD towards the resistance at 1.3635. In case GBP/USD manages to settle above the resistance at 1.3635, it will head towards the resistance level at 1.3665.
For a look at all of today’s economic events, check out our economic calendar.