Forex Marketz Daily Forex News – Fully Markets Update
The British pound is moving lower against a broadly stronger U.S. dollar. The benchmark GBP/USD currency exchange rate has fallen below 1.4060 during the Asian trade session on Thursday after seeing its largest daily drop this month.
The venerable U.S. dollar index surged higher are monthly consumer prices in the United States surged. The consumer price index rose to levels not seen since 2008 which worries Forex traders and other financial market participants.
Still, the U.S. Federal Reserve is unlikely to act soon as they have pledged to keep monetary policy ultra-accommodative for the foreseeable future until sustainable full employment and their target inflation is reached.
Today is Ascension Day in the euro area and thus no economic data releases. The United Kingdom will publish monthly housing prices and the United States will release weekly initial and continuing jobless claims from the Labor Department.
With rising tensions in the Middle East spooking traders, the greenback is likely to see safe haven inflows. Thus weakening the British pound and possibly sending the GBP/USD Forex market lower.
Daily British Pound Technical Analysis (GBP/USD)
Looking at price action on the above MT 4 price action chart, the MACD momentum indicator is signaling bearish price action as the British pound continues to pull back from a short term trend line.
Traders seem to be focusing on the downside barrier in play at 1.4010. A daily close below this level opens the door to challenge the technical support at 1.40. The next layer of technical support lines up at 1.3830 with the key round number of 1.40 then coming into play.
On the upside, a daily close above 1.41 could see a challenge of the next layer of technical support that lines up at the rising resistance line. This level is near 1.4165. The next upside barrier then comes into the picture at 1.4245.
