Forex Marketz Daily Forex News – Fully Markets Update
Looking at the widely traded GBP/USD currency exchange rate, the British pound remains on the defensive against the U.S. dollar (USD). The GBP/USD Forex market, as seen on the above daily MT 4 price action chart is now trading below the uptrend price channel in play since last fall.
The British pound is also trading below the fifty (50) day simple moving average (SMA). Downside price momentum has stabilized a bit, but the sellers remain predominant in the GBP/USD Forex market as the last week of March kicks off.
Forex traders are watching the slow rollout of the coronavirus vaccine in the European Union. The euro area has now vaccinated less than ten percent of their citizens. The European Union faces a sever Covid-19 vaccine shortage and euro area leaders are concerned over the British based AstraZeneca vaccine.
Also, India has been slow to get more supply of the vaccine to England. This is weighing on the pound. Both the European Union and the United Kingdom are trying to reach a deal that avoids supply disruptions and any embargo on the United Kingdom.
Financial and Forex market sentiment is also souring on the news that President Joe Biden’s massive $3 trillion infrastructure deal will be partially funded by new taxes. This is boosting the safe have U.S. dollar. The economic calendar for Monday is quiet with no key releases scheduled.
Daily British Pound Technical Analysis (GBP/USD)
With that said, the British pound sees initial technical support lining up at 1.3670 with the next downside barrier in play at a former upside barrier at 1.3550.
The next downside barrier then lines up at the January low price point at 1.3460. The next layer of technical support lines up at 1.33.
On the upside, initial technical resistance lines up at 1.3775. This is followed by the 50 day simple moving average at 1.3810. There is a psychologically significant layer of technical resistance lining up at 1.40.
