Forex Marketz Daily Forex News – Fully Markets Update
Looking at the benchmark GBP/USD currency exchange rate and above daily MT 4 price action chart, the British pound is continuing to extend its gains against the U.S. dollar.
This uptrend, for the British currency, has been in play since mid-October and currently mounting a challenge of a key upside barrier in play at 1.3515. The British pound is also trading well above the key simple moving average of fifty, one hundred and two hundred (50, 100, 200).
The economic calendar, for Monday, is very sparse. Forex traders will be looking at a number of headlines to spark price volatility. Both the European Union and the United Kingdom are working very hard to bridge gaps over a new trade deal. Differences remain with fisheries, governance and a level playing field.
There is also a coronavirus (Covid-19) pandemic vaccine factoring into the sentiment linked British pound. The United Kingdom is the first western nation to approve the usage of a vaccine. Looking at the United States, both the Democratic and Republican parties in the House of Representatives and Senate are trying to reach a deal on another coronavirus fiscal aid package.
Daily British Pound Technical Analysis (GBP/USD)
Looking at the above GBP/USD price action chart, the 14 day relative strength index (RSI) is still below the seventy (70) level. This means that the currency exchange rate is still not signaling overbought at this price altitude. In other words, the British pound could still push higher.
The December 2019 high price point lining up at 1.3515 is the first upside barrier to monitor. The next layer of technical resistance comes into play at the 2020 high price level at 1.3540. The next upside barrier to come into play are high price points not seen since 2018. The first level lines up at 1.3610 with 1.3720 then coming into focus.
The former 2020 high price point is now a technical support level. This lines up at 1.3485. The next downside barrier line up at the mid-November high price point at 1.34 with the next layer of technical support lining up at 1.3310. The next layer of technical support is at 1.3290 with the downside barrier at 1.3180 then popping up on the radar.
