GBP/USD Tries To Settle Below The Support At 1.3390

Key Insights

• Volatility declines as traders wait for the results of the second round of negotiations between Russia and Ukraine. 
• Traders will also focus on the job market data from the U.S. 
• A move below 1.3390 will push GBP/USD towards the support level at 1.3365.

British Pound Is Mostly Flat Against U.S. Dollar

GBP/USD is currently stuck in the 1.3390 – 1.3420 range, while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle above the resistance level at 97.50. In case the U.S. Dollar Index manages to settle back above this level, it will move towards the next resistance near the recent highs at 97.75.

Today, foreign exchange market traders will have a chance to take a look at the final reading of UK Services PMI report for February. Analysts expect that UK Services PMI improved from 54.1 in January to 60.8 in February.

In the U.S., traders will focus on the latest job market data. Analysts expect that the Initial Jobless Claims report will indicate that 225,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to remain unchanged at 1.48 million.

Traders will also continue to monitor geopolitical events as the second round of negotiations between Russia and Ukraine is expected to begin today. The results of these negotiations will likely have a material impact on demand for safe-haven assets and the dynamics of the U.S. Dollar.

Technical Analysis

GBP/USD is located near the support level at 1.3390. In case GBP/USD declines below this level, it will move towards the next support at 1.3365.

A successful test of the support at 1.3365 will open the way to the test of the next support at 1.3335. If GBP/USD declines below this level, it will head towards the next support level at 1.3300.

On the upside, the nearest resistance for GBP/USD is located at the high end of the current trading range at 1.3420. If GBP/USD moves above this level, it will head towards the next resistance at 1.3450.

A move above 1.3450 will push GBP/USD towards the 20 EMA at 1.3475. In case GBP/USD gets above the 20 EMA, it will head towards the 50 EMA at 1.3500.

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