The British pound has fallen lower against the U.S. dollar after ending a two day downtrend. The headline GBP/USD currency exchange rate has fallen towards 1.3765 after bouncing off the three month old former resistance now support trend line.
The British pound remains below both the one hundred and two hundred (100,200) day simple moving averages and appears to be running out of steam against the U.S. dollar.
Today’s economic calendar is not very busy as the Forex universe is gearing up for this week’s European Central Bank (ECB) monetary policy meeting and announcement due mid-week.
The United Kingdom and European Union have quiet economic data calendars today. The head of the German central bank will be giving commentary.
The economic calendar in the United States will feature the monthly Consumer Board (CB) consumer confidence index. The world’s largest economy is also publishing weekly American Petroleum Institute (API) crude oil inventory data.
Daily British Pound Technical Analysis (GBP/USD)
Looking at the above daily MT 4 price chart, the British pound failed to cross above the one hundred and two hundred day simple moving averages. The 14 day relative strength index (RSI) is also steady.
At this point the GBP/USD Forex market could retest the 1.3740 to 1.3765 congestion zone. The rising trend line in play since 30 September is also holding up well.
A daily close below 1.3735 should open the door to challenge the October high price point lining up at 1.3675. The August low price point lines up at 1.36 with the July low price level coming into play at 1.3575.
On the upside, the one hundred day simple moving average lines up around 1.3791. The next layer of technical resistance comes into play at the round number of 1.38.
Above 1.38, the swing high at 1.3835 is the next upside level with the two hundred day simple moving average lines up around 1.3850.