GBP/USD Video 17.11.20.
British Pound Tries To Gain More Ground Against U.S. Dollar
GBP/USD continues its attempts to settle above the nearest resistance level at 1.3210 as the U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index is currently trying to settle below 92.50. If this attempt is successful, the U.S. Dollar Index will gain additional downside momentum and move towards the next material support level at 92.10 which will be bullish for GBP/USD.
The pound continues to gain ground on signs that UK and EU will be able to reach a compromise deal on Brexit by early next week. However, there’s still a lot of uncertainty regarding the deal so pound’s gains are limited.
Interestingly, the recent vaccine news had little impact on U.S. dollar’s dynamics on the foreign exchange market. Yesterday, riskier assets like stocks and oil got a boost but the U.S. Dollar Index failed to settle below the key support area at 92.50 – 92.60 despite the pressure on safe haven assets.
GBP/USD is currently testing the nearest resistance level at 1.3210. Yesterday, GBP/USD made an attempt to settle above this level but faced resistance near 1.3240 and pulled back.
If GBP/USD settles above 1.3210, it will have a chance to get to another test of the resistance which has emerged at 1.3240. A move above this resistance level will open the way to the test of the next resistance at 1.3270.
In case GBP/USD gets above the resistance at 1.3270, it will likely gain additional upside momentum and move towards the resistance at 1.3325. GBP/USD has recently made an attempt to get above this level but faced strong resistance. However, it may have better chances to move above 1.3325 if it gets to another test of this level.
On the support side, the nearest support for GBP/USD is located at 1.3180. This support level has been tested several times during recent trading sessions and proved its strength. A move below 1.3180 will push GBP/USD towards the next support at 1.3140.
If GBP/USD gets below 1.3140, it will get to the test of the support at the 20 EMA at 1.3125. In case GBP/USD declines below the 20 EMA, it will head towards the support at 1.3100.
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