GBP/USD settled above 1.3390 and is testing the next support level at 1.3420.
Global risk appetite increases after the first round of negotiations between Russia and Ukraine.The U.S. dollar loses its momentum against a broad basket of currencies. A move above 1.3420 will push GBP/USD towards the resistance at 1.3450.
British Pound Gains Ground Against U.S. Dollar.GBP/USD continues its attempts to settle above the resistance at 1.3420, while the U.S. dollar is mostly flat against a broad basket of currencies.
The U.S. Dollar Index is currently located near the support level at 96.70. If the U.S. Dollar Index declines below this level, it will move towards the next support at the 20 EMA at 96.50, which will be bullish for GBP/USD.
Technical Analysis..GBP/USD is testing the resistance level at 1.3420. If this test is successful, GBP/USD will move towards the next resistance at 1.3450.
A move above the resistance at 1.3450 will open the way to the test of the next resistance at 1.3465. If GBP/USD gets above this level, it will move towards the resistance at the 20 EMA at 1.3500. In case GBP/USD manages to settle above the 20 EMA, it will head towards the next resistance level, which is located at the 50 EMA at 1.3510.
On the support side, a move below 1.3420 will push GBP/USD towards the support level at 1.3390. In case GBP/USD declines below this level, it will head towards the next support level at 1.3365. A successful test of this level will open the way to the test of the support at 1.3335.
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