British Pound Is Mostly Flat Against U.S. Dollar

GBP/USD is currently trying to settle below the support at 1.3200 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index received support near the 20 EMA at 95.85 and rebounded towards the 96 level. In case the U.S. Dollar Index manages to settle above this level, it will move towards the next resistance at 96.25 which will be bearish for GBP/USD.

Analysis.

GBP/USD settled below the support level at 1.3230 and is trying to settle below the next support level at 1.3200. In case this attempt is successful, GBP/USD will move towards the support which is located at the recent lows at 1.3170. RSI is close to the oversold territory, but there is enough room to gain additional downside momentum in case the right catalysts emerge.

A move below the support at 1.3170 will open the way to the test of the support at 1.3140. If GBP/USD declines below this level, it will head towards the support at 1.3110.

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