Forex Marketz Daily Forex News – Fully Markets Update
The British pound saw more losses against the U.S. dollar during Monday’s trade session. The GBP/USD currency exchange rate saw its lowest price point since late last month at 1.3845.
The greenback tracked Treasury yields, losing ground against the British pound during the European trade session then moving higher during the North American trade session, sending the GBP/USD Forex market lower. The dollar remains king headed into Tuesday as the greenback buyers are yield hunting.
Once again, tensions between the United Kingdom and European Union are hurting the British pound. The former leader of the United Kingdom’s Independence Party, Nigel Farage, said that the United Kingdom should take over the region’s migrant crisis.
He specifically said that the European Union and France were to blame and Britain should send migrants, who cross The Channel, back to France.
The economic calendar is quiet today. The BRC will publish their monthly retail sales monitor for the United Kingdom. The United States is releasing quarterly non-farm production and labor costs numbers. The ZEW economic research institute will publish monthly economic sentiment surveys for the euro area and Germany.
Daily British Pound Technical Analysis (GBP/USD)
Looking at the above four hour MT 4 price action chart, the GBP/USD Forex market has broken lower and currently challenging the one hundred and two hundred (100, 200) day simple moving averages which are converging and looking flat. In other words, directionless.
The short term twenty (20) day simple moving average is sloping lower. The first upside barrier to monitor lines up at 1.3890. A daily close above 1.3890 opens the door to challenge the next layer of technical resistance in play at 1.3940. The next upside barrier lines up at 1.3990.
Also of note, the technical indicators look flat but within negative territory which is good for the U.S. dollar bulls. The first layer of technical support lines up at 1.3820 with the next downside barrier lining up at 1.3770. The next support level comes into play at 1.3715.
