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GBP/USD Daily Forecast – U.S. Dollar Pulls Back After Yesterday’s Rally

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·2 min read
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  • GBPUSD=X
  • GBP=X

British Pound Moves Higher Against U.S. Dollar

GBP/USD has recently managed to get back above 1.3310 and is moving towards the resistance level at 1.3350 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle back above the 96 level but failed to develop sufficient upside momentum and pulled back towards 95.90. In case the U.S. Dollar Index declines below this level, it will move towards the support level at 95.75 which will be bullish for GBP/USD.

Yesterday, hawkish comments from Fed Chair Jerome Powell provided support to the American currency. Today, foreign exchange market traders will focus on the economic data from U.S.

Analysts expect that ADP Employment Change report will show that private businesses hired 525,000 workers in November. The final reading of Manufacturing PMI report is projected to show that Manufacturing PMI increased from 58.4 in October to 59.1 in November.

In the UK, traders will also have a chance to take a look at the final reading of Manufacturing PMI report for November which is expected to indicate that UK Manufacturing PMI grew from 57.8 to 58.2.

Technical Analysis

GBP/USD is trying to get to the test of the resistance level at 1.3350. If GBP/USD manages to settle above this level, it will move towards the next resistance at 1.3375.

In case GBP/USD gets above 1.3375, it will head towards the resistance which is located near the 20 EMA at 1.3400. A move above this level will open the way to the test of the resistance at 1.3430.

On the support side, the nearest support level for GBP/USD is located at 1.3310. A move below this level will push GBP/USD towards the support at 1.3280.

If GBP/USD declines below 1.3280, it will move towards the next support level at 1.3250. A successful test of this level will open the way to the test of the support at 1.3230.

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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