Forex Marketz Daily Forex News – Fully Markets Update
Looking at the British pound (GBP) and the above daily GBP/USD MT 4 price action chart, this Forex market, for now, is trading above the fifty (50) day simple moving average (SMA). Price action is also above the one hundred and two hundred (100, 200) day simple moving averages.
It is not confirmed yet, but a bearish shooting star candlestick pattern is trying to form. This, alone, is not a price trend defining moment but while above the fifty day SMA, the British pound has some strength for short-term gains against the greenback.
This week, Forex traders will focus on economic growth data out of the Eurozone as well as from Germany. This data starts on Monday when Germany will release key private monthly IFO business climate indices. This includes the monthly German IFO business expectations index.
Traders will also focus on free trade negotiation agreement (FTA) headlines. This is better known as Brexit and will buffet the British pound. The spike in coronavirus cases (Covid-19) that has forced Wales into a sever lockdown and other provinces in the United Kingdom to tighten social distancing guidelines will also affect price action.
The United Kingdom has no economic events on Monday’s calendar. The United States is publishing monthly housing sales data. The Dallas Federal Reserve branch will publish their monthly manufacturing business index.
Daily British Pound Technical Analysis (GBP/USD)
Looking at price action, on the above MT 4 chart, the British pound is trying to challenge and break above the upside barrier in play at the previous October high price point at 1.3080.
A daily close above this level opens the doors for the GBP/USD to challenge 1.3175 then the upside barrier at 1.3270 comes into focus. This is the August high price point. The next upside barrier lines up at 1.3395.
There is technical support in play at 1.30. This level is supported by the 50 day simple moving average. The next downside barrier lines up at the 100 day simple moving average at 1.2880. The next layer of technical support is at the September low price point at 1.2665.
