Yahoo News GBP/USD Daily Forecast – British Pound Is Mostly Flat Ahead Of The Weekend
British Pound Shows Little Reaction To Economic Reports
GBP/USD is currently trying to settle below the support level at 1.3780 while the U.S. dollar is losing some ground against a broad basket of currencies.
The U.S. Dollar Index faced resistance at 93.75 and pulled back. The nearest support level for the U.S. Dollar Index is located at 93.50. In case the U.S. Dollar Index gets to the test of this level, GBP/USD will get more support.
UK has recently released Consumer Confidence report for October which indicated that Consumer Confidence declined from -13 in September to -17 in October as the number of new coronavirus cases moved closer to pandemic highs.
UK Retail Sales report showed that Retail Sales declined by 0.2% month-over-month compared to analyst consensus which called for growth of 0.5%. On a year-over-year basis, Retail Sales decreased by 1.3%.
Today, foreign exchange market traders will also have a chance to take a look at flash PMI reports from UK. Analysts expect that UK Manufacturing PMI declined from 57.1 in September to 55.8 in October. UK Services PMI is projected to decrease from 55.4 to 54.5.
Technical Analysis
GBP/USD managed to get below the support at 1.3800 and is trying to move below the next support level at 1.3780. In case this attempt is successful, it will head towards the support at 1.3745.
A move below the support level at 1.3745 will open the way to the test of the support at 1.3710. The 50 EMA and the 20 EMA are located near 1.3710, so GBP/USD will likely get material support in the 1.3705 – 1.3715 area. In case GBP/USD declines below the 20 EMA, it will get to the test of the next support at 1.3690.
On the upside, a move above 1.3800 will push GBP/USD towards the resistance level at 1.3835. If GBP/USD gets above this level, it will head towards the next resistance level at 1.3875. In case GBP/USD manages to settle above 1.3875, it will head towards the resistance at 1.3900.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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GBP/USD Daily Forecast – British Pound Is Mostly Flat Ahead Of The Weekend
