GBP/USD Tests Support At 1.3665

British Pound Is Mostly Flat Against U.S. Dollar

GBP/USD continues its attempts to settle below the support level at 1.3675 while U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index is testing the resistance level at 95.20. In case the U.S. Dollar Index manages to settle above this level, it will move towards the next resistance at 95.40 which will be bearish for GBP/USD.

There are no important economic reports scheduled to be released in the U.S. and UK today so foreign exchange market traders will focus on general market sentiment.

China has recently released its fourth-quarter GDP Growth Rate report which indicated that GDP increased by 4.0% year-over-year compared to analyst consensus which called for growth of 3.6%.

China’s Retail Sales grew by 1.7% year-over-year in December compared to analyst consensus of 3.7%, while Industrial Production increased by 4.3% year-over-year compared to analyst consensus which called for gorwth of 3.6%.

At this point, economic reports from China had minimal impact on the currency market.

Technical Analysis

GBP/USD settled below the support at 1.3700 and made several attempts to settle below the next support level which is located at 1.3665.

In case GBP/USD declines below the support at 1.3665, it will head towards the next support level at 1.3635. A successful test of this level will push GBP/USD towards the support at 1.3600. If GBP/USD gets below 1.3600, it will head towards the next support level which is located at 1.3575.

On the upside, the previous support level at 1.3700 will serve as the first resistance level for GBP/USD. In case GBP/USD manages to settle above this level, it will move towards the next resistance which is located at 1.3735.

A move above the resistance at 1.3735 will open the way to the test of the next resistance at 1.3765. In case GBP/USD gets above 1.3765, it will move towards the resistance level at 1.3800.

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