GBP/USD Daily Forecast – British Pound Is Strong At The Start Of The Week
GBP/USD Video 19.04.21.
U.S. Dollar Is Under Pressure Against British Pound
GBP/USD is currently trying to settle above the resistance at 1.3865 while the U.S. dollar is losing some ground against a broad basket of currencies.
The U.S. Dollar Index has recently made an attempt to get to the test of the nearest resistance level at the 50 EMA at 91.80 but failed to develop sufficient upside momentum and pulled back closer to the support at 91.50. A successful test of this support level will push the U.S. Dollar Index towards the next support at 91.30 which will be bullish 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 and dynamics of U.S. government bond markets.
U.S. Treasury yields are moving lower at the start of the week which is bearish for the American currency. If the yield of 10-year Treasuries manages to settle below the recent lows at 1.53%, it will head towards the 50 EMA at 1.51% which will put more pressure on the U.S. dollar.
Technical Analysis
GBP/USD managed to get above the resistance at 1.3835 and is trying to settle above the next resistance level which is located at 1.3865. In case this attempt is successful, GBP/USD will move towards the resistance at 1.3900.
A move above the resistance at 1.3900 will open the way to the test of the resistance near April highs at 1.3920. If GBP/USD gets above this level, it will head towards the resistance which is located at 1.3950.
On the support side, the previous resistance level at 1.3835 will likely serve as the first support level for GBP/USD. If GBP/USD declines below this level, it will head towards the next support at the 50 EMA at 1.3805. The 20 EMA is located in the nearby, so GBP/USD will likely get material support near 1.3800.
If GBP/USD manages to settle below the 50 EMA and the 20 EMA, it will get to the test of the next support at 1.3780. A successful test of this level will push GBP/USD towards the support at 1.3745.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
