GBP/USD is trading in the 1.3575 – 1.3600 range.British Pound Is Mostly Flat Against U.S. Dollar.GBP/USD has recently made another attempt to settle above the resistance at 1.3600 but failed to develop sufficient upside momentum and pulled back towards 1.3575 while the U.S. dollar gained ground against a broad basket of currencies.
The U.S. Dollar Index is currently trying to settle back above the resistance at the 96 level. In case this attempt is successful, the U.S. Dollar Index will move towards the resistance at 96.25 which will be bearish for GBP/USD.Today, foreign exchange market traders will focus on the economic data from U.S. Initial Jobless Claims report is expected to show that 219,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are expected to decrease from 1.62 million to 1.61 million.
Analysts expect that Housing Starts declined by 0.5% month-over-month in January after growing by 1.4% in December. Building Permits are projected to decline by 4% on a month-over-month basis.
GBP/USD is currently trying to stay above the nearest support level at 1.3575. In case this attempt is successful, GBP/USD will get to another test of the resistance level at 1.3600.A move above the resistance at 1.3600 will open the way to the test of the next resistance level which is located at 1.3625. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge. In case GBP/USD manages to settle above the resistance level at 1.3625, it will move towards the resistance near February highs at 1.3650.
On the support side, GBP/USD needs to settle back below the support at 1.3575 to have a chance to gain downside momentum in the near term. The next support level for GBP/USD is located near the 20 EMA at 1.3550.If GBP/USD declines below the 20 EMA, it will move towards the next support level at the 50 EMA at 1.3520. A successful test of this support level will push GBP/USD towards the support at 1.3490.
Don’t miss a thing! Sign up for a daily update delivered to your inbox