Forex Marketz Daily Forex News – Fully Markets Update
Looking at the benchmark GBP/USD Forex market on the above four (4) hour MT 4 price action chart, the British pound is consolidating losses below a rising trend line. Price action is trading between 1.3575 and 1.3580 during the Asian trade session.
The safe haven U.S. dollar (USD) is enjoying somewhat of a boost against the sentiment linked British pound (GBP). The United Kingdom has also gone on full lockdown as of midnight London time on Tuesday in order to control a sharp spike in new Covid-19 cases.
Germany, the euro area’s largest economy, is considering extending their coronavirus lockdown, with stricter conditions, into the end of the month.
Georgia is mulling whether or not to investigate President Donald Trump for openly trying to overturn the result of the state’s 3 November national election. This comes from an hour long recording where Trump threatens, and at times, begs them to find him votes.
In the United States, the Institute for Supply Management (ISM) will publish their monthly manufacturing purchasing managers’ index (PMI). Both Spain and Germany will release monthly labor data. Germany is publishing monthly retail sales. The United Kingdom has no data scheduled for release today.
Daily British Pound Technical Analysis (GBP/USD)
Looking at the GBP/USD price chart, the British pound, found some support at the fifty (50) hourly simple moving average (SMA). Forex traders should also note that the MACD histogram is signaling a bearish price trend as well.
The trend line in question has been in ply since 21 December and has guided prices higher since that time. With that said, a daily close below 1.36 will be critical for the bears. In this case, a challenge of 50 and 200 hour simple moving averages could be in play. These layers of support line up at 1.3549 and 1.3410 respectively. The next downside barrier lines up at 1.3130.
On the upside a daily close above 1.3662 opens the door to challenge multi-month high price point at 1.3705.
