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British Pound finds Support at the 10 Day EMA

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Looking at the benchmark GBP/USD currency exchange rate on the above daily MT 4 price action chart, the British pound (GBP) Forex traders are taking a breather just above the ten (10) day exponential moving average (EMA) near 1.3120.

The British pound moved higher from a weekly low price point as the GBP/USD Forex market recovered from 1.3105/06.

Today the United Kingdom will publish their monthly CB leading index. The United States will release their monthly core and headline producer price index. The University of Michigan is releasing their monthly preliminary look at consumer sentiment as well as inflation expectations.

The Eurozone is releasing their preliminary flash quarterly gross domestic product (GDP) and Germany is publishing their monthly WPI data. Canada has no economic data scheduled for release on Friday.

Daily British Pound Technical Analysis (GBP/USD)

Looking at the above GBP/USD price chart, the British pound has found some support at the above mentioned ten day exponential moving average. The 14 day MACD histogram is flashing a bullish price trend, as well.

With that said, there is an upward sloping trend line from 10 September that could contain any upward advance. This upside barrier lines up at 1.3262. Before that happens a daily and sustained close above 1.3175 is needed to challenge the key layer of technical resistance in play at 1.32.

A daily close above 1.3262, and that above mentioned trend line, will open the door to challenge the next upside barrier that lines up at 1.3313. On the downside, a daily closed below the ten day EMA, that lines up at 1.3118 will open the door to challenge the rising trend line in play since 2 November.

This downside barrier lines up at 1.3080. Any sustained move below 1.3080 opens the door for the key psychological downside barrier in play at 1.30. The monthly low price point at 1.2850 then comes into focus.

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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