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

British Pound Is Mostly Flat Against U.S. Dollar

GBP/USD continues its attempts to settle below the support at 1.3780 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index failed to settle above the resistance level at 92.80 and pulled back towards the support at the 20 EMA at 92.60. In case the U.S. Dollar Index declines below this level, it will move towards the next support at the 50 EMA at 92.45 which will be bullish for GBP/USD.

There are no important economic reports scheduled to be released in the UK today so foreign exchange market traders will focus on the economic data from U.S.

Analysts expect that Initial Jobless Claims report will show that 335,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to decline from 2.75 million to 2.74 million.

Traders will also keep an eye on the European Central Bank which will release its Interest Rate Decision today. While ECB does not directly influence GBP/USD dynamics, its commentary will have an impact on the whole forex market.

Technical Analysis

GBP/USD declined below the support level at 1.3780 but did not manage to develop additional downside momentum. In case GBP/USD gets back above 1.3780, it will head towards the next resistance level at 1.3800.

A successful test of the resistance at 1.3800 will open the way to the test of the next resistance at the 50 EMA at 1.3810. If GBP/USD settles above this level, it will head towards the resistance at 1.3835.

On the support side, GBP/USD needs to stay below 1.3780 to have a chance to develop downside momentum in the near term. The next support level for GBP/USD is located at 1.3745.

If GBP/USD declines below 1.3745, it will move towards the next support at 1.3710. A successful test of this level will open the way to the test of the support at 1.3690.

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