U.S. Dollar Tries To Gain More Ground Against British Pound
GBP/USD is currently trying to settle below the support at 1.3835 while the U.S. dollar is gaining some ground against a broad basket of currencies.
The U.S. Dollar Index settled above 92.50 and tries to continue its upside move. The nearest resistance level for the U.S. Dollar Index is located at 92.80. In case the U.S. Dollar Index manages to get to the test of this level, GBP/USD will find itself under pressure.
Today, foreign exchange market traders will focus on the economic data from U.S. Analysts expect that Retail Sales declined by 0.4% month-over-month in June. On a year-over-year basis, Retail Sales are forecast to grow by 14% as they remained under pressure in June 2020.
Traders will also have a chance to take a look at the preliminary Michigan Consumer Sentiment report for July. Analysts project that Consumer Sentiment improved from 85.5 in June to 86.5 in July.
GBP/USD settled below the 20 EMA at 1.3865 and is trying to settle below the next support level which is located at 1.3835. In case this attempt is successful, GBP/USD will move towards the next support level at 1.3800.
A successful test of the support at 1.3800 will open the way to the test of the next support at 1.3780. If GBP/USD declines below 1.3800, it will head towards the support at 1.3745. A move below this level will open the way to the test of the support at 1.3710.
On the upside, GBP/USD needs to settle back above 1.3835 to have a chance to develop upside momentum in the near term. RSI is in the moderate territory, and there is plenty of room to gain upside momentum in case the right catalysts emerge.
If GBP/USD manages to settle above 1.3835, it will head towards the resistance which is located at the 20 EMA at 1.3865. A move above the 20 EMA will push GBP/USD towards the resistance at 1.3900.
For a look at all of today’s economic events, check out our economic calendar.