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.