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British Pound Falters around the 61.8% Fibonacci Level

British

The British pound is trading around 151.55 to 151.60 yen during the Wednesday Asian trade session. The benchmark GBP/JPY Forex market looks a bit weak as safe haven currencies are getting a bid over sentiment linked partners.

Tomorrow is a big day for the British pound. The Bank of England will conclude their monetary policy meeting. The Old Lady will announce their rate decision and monetary policy for August. The Bank of England is widely expected to remain on the sidelines.

However, the BOE is far less patient with inflation than their peers at the U.S. Federal Reserve or European Central Bank. The Bank of England will likely express that in their monetary policy statement causing British pound volatility.

Today, the United Kingdom will publish their final monthly services purchasing managers’ index (PMI). The United States, will focus on labor numbers. The path to Friday’s non-farm payroll begins. The monthly private ADP non-farm payroll change will be published.

The U.S. will also release their final monthly services purchasing managers’ index. The European Union and Italy will publish their final monthly services purchasing managers’ index numbers. They will also release monthly retail sales.  

Daily British Pound Technical Analysis (GBP/JPY)                                                                             

The British pound is finding it difficult to mount a strong recovery above the 61.8 percent Fibonacci level. The GBP/JPY currency exchange rate is also below the 200 hour simple moving average.

With that said, a daily close below 151.50 opens the door to challenge the 8 July swing low lining up at 150.65. The next layer of technical support lines up at 150 yen. The July monthly low is in play at 148.50.

On the upside, the 61.8 percent Fibonacci level lines up at 152 yen with 152.20 then coming into focus next. The next upside barriers line up at 152.60 then the key upside level at 153.50 yen.

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.

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