Forex Marketz Daily Forex News – Fully Markets Update
The British pound is extending its recovery against the U.S. dollar as price action challenges 1.3760 during the early Asian trade session. As a result, the benchmark GBP/USD currency exchange rate is staying within its one week old sideways trade pattern.
Looking at the above four hour MT 4 price chart, price action in the GBP/USD Forex market is also moving up from the horizontal price zone in play since the low price points on 24 March.
The economic calendar is fairly light today. The Federal Reserve will release their Beige Book and the United Kingdom has no economic data releases planned. The sentiment linked British pound will react to coronavirus vaccine headlines as well as some geopolitical tensions.
These could support the safe haven U.S. dollar. China has warned the United States to stay away from Taiwan and Iran is enriching uranium to sixty percent. Iran has blamed Israel for a recent attack on their Natanz nuclear facility.
Also, European Central Bank President Christine Lagarde and U.S. Federal Reserve Board Chair Jerome Powell will be giving commentary. Should the head central bankers of the two leading central banks remain cautious, the dollar could benefit over the British pound.
Daily British Pound Technical Analysis (GBP/USD)
The British pound needs a daily close above the one hundred (100) hour simple moving average in order to open the door to challenge the technical resistance at 1.38. The next upside barrier lines up at the 29 March high price point at 1.3845.
A daily close above the March top could then open the door to challenge the monthly high price point in play at 1.3920.
On the downside a break below the support level at 1.3730 opens the door to challenge the round number in play at 1.37. The next downside barrier is in play at 1.3670 with the February low price point then coming into the picture at 1.3565.
