Forex Marketz Daily Forex News – Fully Markets Update
The British pound is trading sideways against the greenback around 1.38 during the early Asian trade session. This follows a day of a lot of price action volatility and the appearance of a Doji candlestick which signals Forex trader indecisiveness in the GBP/USD currency exchange rate.
The economic calendar for Thursday will feature central bank meeting minutes and weekly U.S. labor data. The European Central Bank (ECB). They will publish their minutes of their last monetary policy and interest rate decision.
At stake here for currency traders are clues regarding where ECB policy makers stand on inflation as well as the future of their monthly asset purchases. Forex traders will also look for clues regarding the future direction of interest rates. Germany will publish their monthly trade balance.
The United Kingdom is releasing monthly housing data. This data comes from RICS who will release their monthly housing price balance numbers. The United States Labor Department will publish weekly initial and continuing jobless claims numbers. The world’s largest economy is also releasing monthly consumer credit numbers.
Daily British Pound Technical Analysis (GBP/USD)
Looking at the above daily MT 4 price action chart, the British pound is trading above the two hundred (200) day simple moving average. Also, the 14 day MACD histogram is looking bullish which is keeping the GBP/USD bulls hopeful for more gains.
The three week old falling wedge upside barrier will provide tough technical resistance for the British pound. This upside barrier lines up at 1.3875 with the next layer of technical resistance lining up at the psychological level of 1.40. The next upside barrier lines up at 1.4035.
On the downside, a daily close below the trough in play at 1.3730 will open the door to challenge the key support level at 1.37. A sustained close below 1.37 opens the door to challenge the 200 day simple moving average at 1.3668.
