GBP/USD Video 23.11.20.
British Pound Gains Ground At The Start Of The Week
GBP/USD is currently trying to settle above the nearest ressitance level at 1.3325 as the U.S. dollar continues to lose ground against a broad basket of currencies.
The U.S. Dollar Index is moving towards the nearest support level at 92.10. If the U.S. Dollar Index settles below this level, it will gain downside momentum and head towards the next support level at 91.75 which will be bullish for GBP/USD.
Today, foreign exchange market traders will focus on flash PMI data for November. In the UK, Manufacturing PMI is expected to decrease from 53.7 to 50.5 while Services PMI is projected to drop from 51.4 to 42.5. The projected sharp decline in Services PMI is not surprising given the negative impact of the second lockdown.
In the U.S., Manufacturing PMI is expected to decline from 53.4 to 53 while Services PMI is projected to decrease from 56.9 to 55.3. Analysts expect that the speed of the economic rebound in the U.S. has slowed down due to surging coronavirus.
GBP/USD trading dynamics will be also influenced by any Brexit news. Negotiations between EU and UK continue, and the market believes that a compromise deal will be reached. A negative surprise on this front will put serious pressure on the British pound, while successful negotiations will likely push it towards yearly highs.
GBP/USD has managed to settle above the resistance at 1.3270 and is trying to move above the next resistance level at 1.3325. If this attempt is successful, GBP/USD will head towards the next resistance at 1.3400.
In case GBP/USD gets above the resistance at 1.3400, it will move towards yearly highs at 1.3485. There are no important levels between 1.3400 and 1.3485 so this move may be fast.
On the support side, the previous resistance at 1.3270 will likely serve as the first support level for GBP/USD. If GBP/USD manages to settle below this level, it will gain downside momentum and head towards the next support level near the 20 EMA at 1.3210.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire