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 still trading in the rising trend channel against the U.S. dollar. However, the U.S. dollar has gotten recent support from spiking Treasury yields and a massive coronavirus fiscal stimulus package.
On Friday, U.S. Treasury yields climbed higher. A selloff with the benchmark ten year Treasury bond saw its yield spike higher and back to 1.62 percent. The U.S. Congress also passed President Joe Biden’s massive $1.9 trillion fiscal aid package.
This bill includes direct payments of $1,400 to households and state and local governments will get $350 billion in federal aid. Also, Paycheck Program for loans to small businesses will get an added $7.25 billion in funds.
Overall, this supported the almighty greenback at the expense of the British pound. GBP/USD Forex traders are likely to wait on the monetary policy decisions from both the U.S. Federal Reserve and Bank of England. Both are scheduled for this week.
Daily British Pound Technical Analysis (GBP/USD)
Looking at the above price action chart, the British pound is being supported by a few upside technical indicators. The GBP/USD Forex market found support at the fifty (50) day simple moving average which signals more upside momentum.
Also this benchmark currency exchange rate is trading above the one hundred and two hundred (100, 200) day simple moving averages.
There is immediate upside technical resistance in play at the psychologically important 1.40 number. This has capped price action this month. The next upside barrier lines up at 1.4140 with the February 2021 high price point at 1.4240 then coming into play.
The first downside barrier to watch lines up at 1.365. This has been an important layer of technical support since early March. The next layer of technical support comes into play at 1.3750. The February swing low price point at 1.3565 then comes into range.
