GBP/USD Daily Forecast – British Pound Tries To Rebound Against U.S. Dollar

U.S. Dollar Is Mostly Flat Against British Pound

GBP/USD is currently trying to settle back above 1.3200 while U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index is moving towards the resistance level at 96.50. In case the U.S. Dollar Index manages to settle above this level, it will head towards the next resistance at 96.70 which will be bearish for GBP/USD.

UK has recently reported that Claimant Count Change was -49,800 in November compared to analyst forecast of -20,000. UK Unemployment Rate declined from 4.3% in September to 4.2% in October, in line with the analyst consensus.

Today, foreign exchange market traders will also focus on Producer Prices data from U.S. Analysts expect that Producer Prices increased by 0.5% month-over-month in November after growing by 0.6% in October. On a year-over-year basis, Producer Prices are expected to increase by 9.2%. The currency market may be sensitive to Producer Prices data from U.S. ahead of the Fed Interest Rate Decision, which will be released on Wednesday.

Technical Analysis

GBP/USD received support near 1.3200 and is trying to gain upside momentum. In case this attempt is successful, GBP/USD will move towards the resistance level at 1.3230.

A successful test of the resistance at 1.3230 will open the way to the test of the next resistance at 1.3250. In case GBP/USD manages to settle above 1.3250, it will head towards the resistance at 1.3280. A move above this level will push GBP/USD towards the resistance which is located at the 20 EMA at 1.3290.

On the support side, the nearest support level for GBP/USD is located at 1.3200. If GBP/USD moves below this level, it will head towards the support level at 1.3170.

In case GBP/USD settles below 1.3170, it will continue its downside move and head towards the next support which is located at 1.3140. A successful test of the support at 1.3140 will push GBP/USD towards the support level at 1.3110.

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