Forex Marketz Daily Forex News – Fully Markets Update
The British pound on the above GBP/JPY daily MT 4 price action chart has pared back early gains made during today’s early Asian trade session. This market fell from an intraday high of 141.65 to 141.58 then recovered.
The British pound, yesterday, hit a four month high price point at 142.34 before pulling back towards 141.08. This Forex market found some support there.
On today’s economic calendar, the monetary policy and interest rate decision from the European Central Bank (ECB) will de dissected closely by Forex traders as well as those who trade the British pound (GBP). The European Central Bank is not expected to change monetary policy settings.
Across The Pond, the U.S. Labor Department will release weekly first time unemployment claims and continuing claims data. The Philadelphia Fed is releasing monthly manufacturing data.
Yesterday, President Joe Biden, the 46th President of the United States was sworn in. Last week, President Joe Biden unveiled a $1.9 trillion pandemic fiscal rescue stimulus plan. The Biden administration is now looking to follow that fiscal rescue plan up with another fiscal package focusing on climate and infrastructure
The British pound and Japanese yen is also reacting to headlines out of China. China has issued a list of 28 Americans, most of the from the Trump administration. This list includes Secretary of State Mike Pompeo, who will face sanctions.
Daily British Pound Technical Analysis (GBP/JPY)
Looking at price action and the relative strength index (RSI) which is signaling overbought above the 21 day simple moving average could cap gains in the GBP/JPY Forex market.
On the downside, the rising trend line support lines up at 140.85. This rising trend line is in play since 5 January. The next downside barrier comes into play at 140.60. The key psychological barrier at 140 then comes into play.
On the upside the psychological barrier of 142 is the first layer of resistance to watch. Above that is 142.35 with 142.50 coming into focus next. The 2020 high price point at 142.75 then pops up.
