GBP/USD Daily Forecast – British Pound Tries To Gain Ground Ahead Of The Weekend

British Pound Is Mostly Flat Against U.S. Dollar

GBP/USD continues its attempts to settle above the resistance level at 1.3500 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index failed to settle below 95.60 and is trying to gain upside momentum. In case this attempt is successful, the U.S. Dollar Index will move towards the resistance level at 95.75 which will be bearish for GBP/USD.

UK has recently reported that Consumer Confidence improved from -17 in October to -14 in November compared to analyst consensus of -18.

Today, foreign exchange market traders will also focus on Retail Sales data from UK. Analysts expect that Retail Sales increased by 0.5% month-over-month in October after declining by 0.2% in September. On a year-over-year basis, Retail Sales are projected to decline by 2%.

The Retail Sales report may have a material impact on GBP/USD dynamics as it will show whether consumers have reacted to higher inflation.

Technical Analysis

GBP/USD continues to test the nearest resistance level which is located at 1.3500. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

In case GBP/USD settles above the resistance at 1.3500, it will head towards the next resistance level at the 20 EMA near 1.3525. A move above the 20 EMA will open the way to the test of the resistance at 1.3560.

If GBP/USD settles above the resistance at 1.3560, it will head towards the next resistance level at 1.3575. A successful test of this level will open the way to the test of the resistance at 1.3600.

On the support side, the nearest support level for GBP/USD is located at 1.3470. In case GBP/USD declines below this level, it will move towards the next support at 1.3450. A move below 1.3450 will open the way to the test of the support at 1.3425.

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