Traders Wait For U.S. Non Farm Payrolls Report
GBP/USD is trying to settle above the resistance at 1.3835 while the U.S. dollar is flat against a broad basket of currencies.
The U.S. Dollar Index has recently made an attempt to settle below the support level at 92.15 but failed to develop sufficient downside momentum. In case the U.S. Dollar Index declines below this level, it will move towards the support at 91.90 which will be bullish for GBP/USD.
Today, foreign exchange market traders will have a chance to take a look at the final reading of UK Services PMI report for August. Analysts expect that UK Services PMI declined from 59.6 in July to 55.5 in August.
It remains to be seen whether this report will have an impact on GBP/USD dynamics as many traders would prefer to wait for the main event of the day – the release of U.S. Non Farm Payrolls report. This report is projected to show that U.S. economy added 750,000 jobs in August. If the report exceeds analysts expectations, U.S. dollar may gain solid upside momentum as strong job market data would almost guarantee that Fed will announce the reduction of its asset purchase progam at its meeting in September.
GBP/USD settled above the 50 EMA at 1.3810 and is trying to settle above the next resistance level which is located at 1.3835. In case this attempt is successful, GBP/USD will head towards the resistance at 1.3880.
A move above 1.3880 will open the way to the test of the resistance at 1.3900. If GBP/USD manages to get above 1.3900, it will move towards the next resistance level at 1.3930.
On the support side, the nearest support level for GBP/USD is located at the 50 EMA at 1.3810. A move below the 50 EMA will lead to a test of the support at 1.3800.
In case GBP/USD manages to settle below this level, it will head towards the support at the 20 EMA at 1.3780. A successful test of this support level will open the way to the test of the support at 1.3745.
For a look at all of today’s economic events, check out our economic calendar.