GBP/USD Retreats As Resistance At 1.3600 Stays Strong

British Pound Declines Against U.S. Dollar

GBP/USD has recently made another attempt to settle above the resistance at 1.3600 but failed to develop sufficient momentum and pulled back while U.S. dollar remained under pressure against a broad basket of currencies.

The U.S. Dollar Index managed to settle below the support level at 95.40 and tested the next support at 95.20. In case the U.S. Dollar Index declines below 95.20, it will head towards the 95 level which will be bullish for GBP/USD.

Today, foreign exchange market traders will focus on job market data from U.S. Analysts expect that Non Farm Payrolls report will indicate that the U.S. economy added 150,000 jobs in January.

The recent ADP Employment Change report was disappointing, but it should be noted that Non Farm Payrolls and ADP Employment Change reports often paint different pictures.

Unemployment Rate is projected to remain unchanged at 3.9%. The market will be sensitive to job reports as traders try to guess the speed at which the Fed will raise rates in 2022.

GBP/USD is moving towards the support level at 1.3575. In case GBP/USD manages to settle below this level, it will head towards the next support which is located at 1.3550. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If GBP/USD declines below 1.3575, it will head towards the support at 1.3535. A move below this level will push GBP/USD towards the 20 EMA which is located at 1.3525.

On the upside, GBP/USD needs to settle above 1.3600 to have a chance to gain upside momentum in the near term. A move above this level will open the way to the test of the next resistance at 1.3625.

If GBP/USD gets above 1.3625, it will head towards the resistance at 1.3650. A successful test of this level will push GBP/USD towards the next resistance at 1.3680.

For a look at all of today’s economic events, check out our economic calendar.