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British Pound Looks to Challenge 1.3060

british

Looking at the British pound (GBP) on the above four (4) hour GBP/USD MT 4 chart, this Forex market is trading around 1.30, which is a key upside barrier and has held during the early Asian trade session on Thursday.

The British pound has been on the defensive against the U.S. dollar (USD) as the GBP/USD currency exchange rate has bounced off a late –July price point. Forex traders should note that the MACD histogram is trending more into bullish territory that could lead to more gains for the British currency.

The economic calendar out of the United Kingdom is quiet today with no economic data scheduled to be released. The United States will be releasing weekly labor data. This includes the Labor Department’s first time unemployment claims as well as weekly continuing unemployment benefits.

The world’s largest economy is also publishing monthly core and headline producer price indices (PPI). The PPI is also known as factory gate prices.

The European Central Bank (ECB) will be announcing their monthly monetary policy and rate decision. The ECB will also hold their monetary policy press conference. France and Italy will be publishing monthly industrial production data.

Daily British Pound Technical Analysis (GBP/USD)                                                      

Looking at the above four hour price action chart, the GBP/USD Forex market is trying to challenge the first upside barrier in play at 1.3023. A daily close above this level opens the door to challenge the 24 August low price point in play at 1.3060.

The next upside barrier is in play at the two hundred (200) hour moving average (HMA) in play at 1.3135. There is also an upwards sloping trend line from 29 June lining up at 1.3140.

The first layer of technical support lines up at 1.2885. The 14 July and 1 September high price point at 1.2860 then comes into play. The next downside barrier is at the 21 July high price in play at 1.2765.

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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