Forex Marketz Daily Forex News – Fully Markets Update
The British pound has broken lower and below a daily rising triangle chart formation that was in play since the low price point seen 17 May. The headline GBP/USD currency exchange rate is opening the last trading week of June 1.3880 and below the upside barrier at 1.3950.
The British pound is looking slightly bearish on Monday. The economic calendar is also fairly light. The United Kingdom has no economic data scheduled for release. The world’s largest economy, the United States will publish the Dallas Federal Reserve Board’s monthly manufacturing business index.
Federal Open Market Committee (FOMC) members Charles Evans and Randal Quarles are scheduled to give commentary. The euro area will publish monthly import prices.
Daily British Pound Technical Analysis (GBP/USD)
Looking at price action on the above daily MT chart, the GBP/USD Forex market is trading below the short term twenty (20) day simple moving average (SMA) as well as the one hundred (100) day simple moving average. This has increased the interest of British pound sellers.
The 14 day relative strength index (RSI) is signaling neutral price action as is the 14 day MACD histogram which is below the mid-line. This could lead to price drifting in absence of economic triggers on Monday. Both indicators are also in oversold regions.
While below the 20 and 100 day simple moving averages, sellers seem to be in control for now. The 20 day simple moving average has also turned lower. Initial technical support comes into play at 1.3860.
A daily close below this level opens the door for June’s low price point at 1.3785. The next layer of technical support lines up at 1.3660.
On the upside, a close above 1.40 opens the door to challenge the upside barrier in play at 1.41. The next key upside barrier, which could cause a correction lower, is at 1.42.
