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GBP/USD Daily Forecast – Support At 1.3665 In Sight

Vladimir Zernov
·2 min read

GBP/USD Video 12.04.21.

British Pound Remains Under Pressure At The Beginning Of The Week

GBP/USD managed to get below the support at 1.3710 and is moving towards the next support level at 1.3665 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is currently testing the nearest resistance level at the 20 EMA at 92.30. If the U.S. Dollar Index manages to settle above this level, it will head towards the next resistance at 92.50 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 and dynamics of U.S. Treasury yields.

The yield of 10-year Treasuries has recently made several attempts to settle below the 20 EMA at 1.64% but failed to develop sufficient downside momentum. If Treasury yields get back to the upside mode, the U.S. dollar will get more support.

Today, British shops, pub gardens and other businesses are set to reopen as the country gradually lifts virus-related restrictions. However, it remains to be seen whether this move will provide support to the British pound which found itself under pressure in recent trading sessions amid problems with AstraZeneca COVID-19 vaccine.

Technical Analysis

GBP/USD has recently made an attempt to get to the test of the nearest support level at 1.3665. In case GBP/USD manages to settle below this level, it will head towards the next support at 1.3625. A successful test of the support at 1.3625 will push GBP/USD towards the next support at 1.3575.

On the upside, the previous support at 1.3710 will serve as the first resistance level for GBP/USD. If GBP/USD gets above this level, it will move towards the next resistance at 1.3745.

A move above the resistance at 1.3745 will push GBP/USD towards the resistance which is located near the 20 EMA at 1.3780. In case GBP/USD gets above the 20 EMA, it will head towards the next resistance at the 50 EMA at 1.3800.

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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