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GBP/USD Video 24.08.20.
British Pound Tries To Get More Support
GBP/USD has settled near 1.3100 as it tries to consolidate after wild action in recent trading sessions.
The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, is mostly flat. At the end of the previous week, the U.S. Dollar Index made an attempt to settle above the resistance at 93.50 but did not manage to gain sufficient upside momentum.
Currently, the U.S. Dollar Index has settled in a range between 93 and 93.50. In case the U.S. Dollar Index manages to get above 93.50, it will gain additional upside momentum which will be bearish for GBP/USD.
There are no material economic reports scheduled to be released today in the U.S. and UK so GBP/USD will be in the hands of market sentiment.
The U.S. stock market is optimistic about U.S. decision to authorize coronavirus treatment which uses blood plasma from patients who have already had the disease, but currency traders are not impressed with the news.
U.S. government bond yields are falling which may put some pressure on the U.S. dollar but it should be noted that the recent decrease in yields did not have any impact on the American currency.
Technical Analysis
GBP/USD has settled below the nearest resistance level at 1.3110. In case GBP/USD manages to get above this level, it will find itself in a wide trading range between 1.3110 and the recent highs near 1.3270.
The recent trading sessions have proved that there are no material levels between 1.3110 and 1.3270 so GBP/USD may move fast inside this range.
In case GBP/USD manages to get above the recent highs, it will gain more upside momentum and continue its current upside trend.
On the support side, the nearest support for GBP/USD is located at the 20 EMA at 1.3065. A move below the 20 EMA will signal that the current upside momentum has come to an end.
In this case, GBP/USD will gain downside momentum and head towards August lows at 1.2980 although it may also find some support near 1.3010.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire