GBP/USD Tries To Settle Below The Support At 1.3000

Key Insights

• British pound remains under pressure as the U.S. Dollar Index moves towards the 101 level. 
• Today, traders will focus on Building Permits and Housing Starts reports from the U.S. 
• A move below 1.3000 will push GBP/USD towards the support at 1.2970.

British Pound Is Mostly Flat Against U.S. Dollar

GBP/USD is currently trying to settle below the support level at 1.3000, while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is testing the resistance level at 100.85. In case this test is successful, the U.S. Dollar Index will move towards the next resistance at 101.10, which will be bearish for GBP/USD.

Today, foreign exchange market traders will have a chance to take a look at Building Permits and Housing Starts reports from the U.S. Analysts expect that Building Permits declined by 3% month-over-month in March after falling by 1.9% in February. Housing Starts are projected to decrease by 2.3% on a month-over-month basis.

Traders will also continue to monitor the developments in U.S. government bond markets. Treasury yields are currently stuck near recent highs, and the continuation of the upside move will provide additional support to the American currency.

Technical Analysis

GBP/USD is testing the support level at 1.3000. In case this test is successful, GBP/USD will move towards the next support level, which is located at 1.2970.

A move below the support at 1.2970 will open the way to the test of the support at 1.2940. If GBP/USD declines below this level, it will head towards the next support at 1.2915.

On the upside, the previous support level at 1.3030 will serve as the first resistance level for GBP/USD. In case GBP/USD climbs back above this level, it will head towards the resistance at 1.3050.

A successful test of the resistance at 1.3050 will push GBP/USD towards the resistance at 1.3080. If GBP/USD manages to settle above this level, it will move towards the resistance at 1.3110.

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