Home » Technical Analysis » British Pound continues to Lose Ground against the Dollar

British Pound continues to Lose Ground against the Dollar

British

The British pound is on the back foot against the U.S. dollar. The GBP/USD currency exchange rate is trading near its one year old price point at 1.3320. This benchmark Forex market has fallen lower for four days in a row.

Overnight The U.S. Department of Labor reported that only 199,000 workers filed for initial jobless claims. This is the lowest number since an American walked on the mood in 1969. This number could mean one of two things.

Either continued recovery in the labor market or more American workers are giving up looking for work and not bothering to file for benefits. The U.S. labor force is still over five million short of its pre-coronavirus pandemic (Covid-19) level.

The financial markets in the United States are closed for the Thanksgiving Day public holiday. Germany will publish their quarterly gross domestic product (GDP). The rest of the economic calendar is quiet. With the financial markets closed in the United States, trade volume should be low today. The United Kingdom and Canada have no top tier economic data scheduled for release on Thursday.

Daily British Pound Technical Analysis (GBP/USD)

Looking at the above weekly MT 4 price chart, the British pound has been unable to recover since breaking below the September 2020 high price point. The MACD histogram also looks bearish. This could mean further losses for the GBP/USD Forex market.

The one hundred week simple moving average and falling trend line have converged. This layer of support lines up around 1.3290 to 1.3275. The 200 week simple moving average lines up around the 38.2 percent Fibonacci level is the next downside level.

On the upside, the British pound has immediate technical resistance at the September 2020 around 1.3482. The next upside barrier is at the 23.6 percent Fibonacci level at 1.3580. The monthly high price point lines up at 1.37.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

Check Also

British, pound, sterling, UK

British Pound Trades around 1.34 ahead of PMIs

0.0 00 The British pound is trading around 1.34 after the GBP/USD Forex market has …