Forex Marketz Daily Forex News – Fully Markets Update
Looking at the British pound (GBP) on the above daily MT 4 chart, the headline GBP/USD currency exchange rate is trading in a narrow trade range to start the week off.
Forex traders are waiting for a catalyst which should come later this week when the United Kingdom releases monthly retail sales data. This should spark some movement with the British pound.
The Federal Reserve Board (Fed) releases their monthly monetary policy and rate decision meeting minutes. If the Fed signals more dovishness, this could weaken the almighty dollar (USD).
This week’s economic calendar starts off with a whimper. The United Kingdom has no macroeconomic data scheduled to be released on Monday. The world’s largest economy, the United States, will release minor monthly housing data. The private NAHB monthly housing index will be released during North American trade hours.
The European Union has no data on their economic calendar but the Euro Group will kick off their monthly meeting. The Canadian economic calendar is also quiet on Monday.
Daily British Pound Technical Analysis (GBP/USD)
Looking at the above MT 4 chart, the relative strength index (RSI) is near seventy (70). This is an overbought signal.
With that said, the British pound is trading above the fifty, one hundred and two hundred (50, 100, 200) day moving averages but the overall picture for more gains with the benchmark GBP/USD Forex market is not tilted to the upside.
The first layer of technical resistance to watch comes into play at the August high price point at 1.3060. The next layer of technical resistance then lines up at 1.3145 which was a brief high price point for August.
The next layer of technical resistance is at the March swing high price point at 1.32 with 1.3270 then coming into focus. The next layers of technical resistance then line up at 1.3350 then 1.3510.
The first layer of support lines up at the August low price point at 1.2985. The next layer of support lines up at 1.2870 with the fifty day moving average at 1.2815 then coming into play. The 200 DMA then lines up at 1.27.
