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GBP/USD Daily Forecast – British Pound Failed To Gain More Ground Against U.S. Dollar

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·2 min read
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  • GBPUSD=X
  • GBP=X

U.S. Dollar Is Mostly Flat Against British Pound

GBP/USD is currently trying to settle below the support at 1.3250 while U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index failed to settle above the resistance at 96.50 and declined towards the support level at 96.25. In case the U.S. Dollar Index manages to settle below this level, it will move towards the support at 96 which will be bullish for GBP/USD.

It’s a quiet day on the economic calendar, so foreign exchange market traders will focus on general market seniment and the dynamics of U.S. government bond markets.

The yield of 2-year Treasuries has recently made an attempt to settle above 0.69% but lost momentum and pulled back towards 0.68%. Traders remain worried about inflation, and the yield of 2-year Treasuries may soon get above the 0.70% level which will be bullish for the American currency. It should be noted that the yields of longer-term Treasuries remain far below yearly highs which indicates that traders believe that the Fed will be successful in its battle against inflation.

Technical Analysis

GBP/USD failed to settle above the resistance at 1.3280 and declined towards the support at 1.3250. In case GBP/USD manages to settle below the support at 1.3250, it will move towards the next support level which is located at 1.3230.

A move below 1.3230 will open the way to the test of the support at 1.3200. If GBP/USD gets below 1.3200, it will head towards the next support at 1.3170. A successful test of the support at 1.3170 will push GBP/USD towards the support at 1.3140.

On the upside, the nearest resistance level for GBP/USD is located at 1.3280. If GBP/USD gets above this level, it will move towards the support at 1.3310. In case GBP/USD manages to settle above 1.3310, it will head towards the next support level which is located at the 20 EMA at 1.3335.

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

This article was originally posted on FX Empire

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