GBP/USD Tests Support At 1.3465
British Pound Is Losing Ground Against U.S. Dollar
GBP/USD is currently trying to settle below the support level at 1.3465 while U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index continues its attempts to settle above the resistance at the 96 level. In case the U.S. Dollar Index manages to settle above this level, it will move towards the next resistance at 96.25 which will be bearish for GBP/USD.
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Today, foreign exchange market traders will focus on the economic data from U.S. Analysts expect that Case-Shiller Home Price Index increased by 0.7% month-over-month in November. CB Consumer Confidence report is projected to show that Consumer Confidence declined from 115.8 in December to 111.8 in January due to the spread of Omicron.
Traders will also keep an eye on general market sentiment. Yesterday, S&P 500 managed to finish the trading session in the positive territory after a brutal sell-off. Today, S&P 500 futures are down by 1%, indicating that traders are moving out of riskier assets, which is bullish for the U.S. dollar.
Technical Analysis
GBP/USD is currently testing the support level at 1.3465. In case GBP/USD manages to settle below this level, it will move towards the next support which is located near the recent lows at 1.3435. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
A successful test of the support at 1.3435 will open the way to the test of the support level at 1.3410. If GBP/USD declines below this level, it will move towards the next support level at 1.3375.
On the upside, the previous support at 1.3490 will serve as the first resistance level for GBP/USD. If GBP/USD gets back above this level, it will move towards the resistance which is located at the 50 EMA at 1.3505. A move above the 50 EMA will open the way to the test of the resistance at 1.3535.
For a look at all of today’s economic events, check out our economic calendar.