GBP/USD Forecast: Pound unable to attract buyers

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3867

The dollar plunged after US data signalled a possible growth deceleration.
The UK will publish critical employment-related figures on Tuesday.
GBP/USD is technically neutral, could advance on a break above 1.3890.

The GBP/USD pair closed the week unchanged at 1.3867, recovering on the broad dollar’s weakness at the end of the week. The American came under selling pressure after US inflation gave signs of having reached a peak and as consumer sentiment plummeted amid the spread of the Delta variant. However, the pound was unable to attract substantial buying interest, as UK’s growth-related data came in mixed.

The UK will release on Tuesday employment-related figures. The ILO unemployment rate for the three months to June is foreseen steady at 4.8%, although the focus will be on the September Claimant Count Change, the number of people claiming from jobless benefits, which printed at -1148K in the previous month.

GBP/USD short-term technical outlook

The GBP/USD pair is neutral in the daily chart, although developing below a daily descendant trend line coming from July’s monthly high at 1.3983, currently providing resistance at 1.3890. In the mentioned chart, the pair is contained between moving averages, meeting buyers on approaches to the 200 SMA. In addition, the Momentum indicator lacks directional strength around its 100 line, while the RSI indicator aims higher at around 50, suggesting but not confirming additional gains. In the near-term, and according to the 4-hour chart, the pair is also neutral, as the pair settled around a mildly bullish 100 SMA, while technical indicators lost strength upward after crossing into positive territory.

Support levels: 1.3840 1.3790 1.3755

Resistance levels: 1.3890 1.3935 1.3980

View Live Chart for the GBP/USD

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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