In This Article:
Key Insights
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The yield of 10-year Treasuries tries to settle above 2.65%, which is bullish for the U.S. dollar.
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Today, traders will focus on the Wholesale Inventories report from the U.S.
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A move below 1.3050 will push GBP/USD towards the support level at 1.3030.
British Pound Is Losing Ground Against U.S. Dollar
GBP/USD is moving towards the support level at 1.3050, while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index has recently managed to get above the resistance at 99.75 and is trying to get to the test of the next resistance level at 100. In case the U.S. Dollar Index gets to the test of this level, GBP/USD will find itself under more pressure.
Today, foreign exchange market traders will take a look at the Wholesale Inventories report from the U.S., which is expected to show that Wholesales Inventories increased by 2.1% month-over-month in February.
Traders will also continue to monitor the developments in U.S. government bond markets. The yield of 10-year Treasuries continues its attempts to settle above the 2.65% level. A move above this level will open the way to the test of the 2.70% level, which will be bullish for the American currency.
Technical Analysis
GBP/USD is trying to get to the test of the support level at 1.3050. If GBP/USD declines below the support at 1.3050, it will head towards the next support level at 1.3030.
A successful test of the support at 1.3030 will push GBP/USD towards the next support level at 1.3000. In case GBP/USD manages to settle below 1.3000, it will head towards the next support level, which is located at 1.2970.
On the upside, the nearest resistance level for GBP/USD is located at 1.3080. If GBP/USD manages to settle back above this level, it will head towards the next resistance at 1.3110.
A successful test of the resistance at 1.3110 will push GBP/USD towards the resistance at the 20 EMA at 1.3130. If GBP/USD moves above this level, it will get to the test of the next resistance at 1.3140.
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This article was originally posted on FX Empire