GBP / USD Daily Forecast – Support at 1.3710 in sight


British pound retreats against US dollar

GBP / USD is currently attempting to move back below the support level at 1.3710 as the US Dollar advances against a large basket of currencies.

The US dollar index has received support near the 20 EMA at 92.85 and is testing the 93 level. A move above this level will pave the way for the resistance test at 93.10 which will be bearish for the GBP / USD.

Today, forex traders will have the opportunity to take a look at the US Durable Goods Orders Report. The report is expected to show that durable goods orders fell 0.3% month over month in July after rising 0.8% in June.

Traders will also be watching developments in the US government bond markets ahead of the Jackson Hole Symposium, which could have a big impact on currency dynamics.

The yield on 10-year Treasuries recently managed to exceed the MOT 20 at 1.28% and attempted to stabilize above the 1.30% level. If the 10-year T-bill yield manages to stabilize above this level, it will gain additional bullish momentum and head towards the EMA 50 at 1.3350%, which could provide more support for the dollar. American.

GBP / USD failed to settle above resistance at 1.3745 and retreated to the support level at 1.3710. If the GBP / USD drops below this level, it will move to the next support which is at 1.3690.

A successful test of the support at 1.3690 will pave the way for the test of the support at 1.3665. If the GBP / USD drops below this support level, it will head to the next support at 1.3635.

On the upside, GBP / USD needs to move above 1.3745 resistance to continue its rebound. The next resistance level is located at 20 EMA at 1.3765. A move above the 20 EMA will push the GBP / USD towards resistance at 1.3780. If GBP / USD manages to stabilize above this level, it will head towards resistance at 1.3800.

For an overview of all of today’s economic events, check out our economic calendar.


About Rodney Fletcher

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