GBP/USD Tests Support At 1.3080

Key Insights

• GBP/USD attempts to move lower ahead of the weekend.
• UK Industrial Production and Manufacturing Production reports will be in spotlight today.
• A move below 1.3080 will push GBP/USD towards the support at 1.3050.

British Pound Remains Under Pressure

GBP/USD is currently trying to settle below the support level at 1.3080, while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index failed to settle below the support level at 98.35 and moved towards 98.50. In case the U.S. Dollar Index settles above this level, it will head towards the resistance at 98.70, which will be bearish for GBP/USD.

Today, foreign exchange market traders will focus on the economic data from UK. Analysts expect that UK Manufacturing Production increased by 0.2% month-over-month in January. On a year-over-year basis, UK Manufacturing Production is expected to increase by 3.1%. UK Industrial Production is expected to grow by 1.9% year-over-year.

Traders will also have a chance to take a look at the preliminary reading of the Michigan Consumer Sentiment report from the U.S. Analysts expect that Consumer Sentiment declined from 62.8 in February to 61.4 in March. It will be interesting to see whether the recent developments in commodity markets had a material impact on Consumer Sentiment.

Technical Analysis

GBP/USD is testing the support level at 1.3080. If this test is successful, GBP/USD will move towards the next support level, which is located at 1.3050.

A successful test of the support at 1.3050 will push GBP/USD towards the next support at 1.3030. In case GBP/USD manages to settle below this level, it will head towards the next support level at 1.3000.

On the upside, the previous support level at 1.3110 will serve as the first resistance level for GBP/USD. In case GBP/USD settles back above this level, it will head towards the resistance at 1.3135. A move above the resistance at 1.3135 will open the way to the test of the resistance at 1.3175.

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