Home » Weekly Forecast » British Pound Looks Good on the Daily Chart

British Pound Looks Good on the Daily Chart

British

Looking at the benchmark GBP/USD currency exchange rate on the above daily MT 4 price chart, the British pound is still seeing some upside momentum as this Forex market is trading within a broad rising price action tunnel.

The British pound (GBP) is also trading above the key daily moving averages. These include the fifty, the one hundred and the two hundred daily simple moving averages (50, 100, 200 SMAs). This could support the GBP/USD Forex market as the new week starts.

Monday’s economic calendar is quite light. The Governor of the Bank of England (BOE) will give remarks. Forex traders will look for signs about further asset purchases as well as additional accommodative monetary policy measures.

If the Bank of England indicates more monetary policy support this would support the British pound. The euro area is releasing monthly Sentix consumer confidence and the United States has no economic releases on their calendar.

There is a lot of political turmoil and instability in the United States. Last week pro Trump protesters stormed the United States Congress. They were riled up and driven to action by the words of President Donald Trump.

The House of Representatives are preparing articles of impeachment to immediately remove him from office. Law makers on both sides are supporting this measure. There is also talk of using the 25th Amendment to declare him unfit to serve the remainder of his term. This will lead to price volatility with the greenback and other currencies this week.

Daily British Pound Technical Analysis (GBP/USD)

Looking at price action on the above daily MT 4 price chart, the GBP/USD currency exchange rate has near term resistance in play at 1.3620. This is the December monthly high price point. The multi-high price point at 1.3705 then comes into play.

The next upside barriers, not seen since 2018, lining up at 1.3730 and 1.3810 then come into focus.

On the downside, initial support lines up at the early 2021 low price point at 1.3510. The next downside barrier comes into play at 1.3420. Below this level the November high price point at 1.33 pops up on the radar.

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.

Check Also

japanese yen, dollar

Japanese yen Trades within Descending Channel

0.0 00 Looking at the Japanese yen (JPY) on the above USD/JPY daily MT 4 …