Forex Marketz Daily Forex News – Fully Markets Update
The sentiment linked British pound is on the back foot against the almighty U.S. dollar. The benchmark GBP/USD currency exchange rate has broken below 1.3725 and is below the fifty, one hundred and two hundred (50, 100, 200) day simple moving averages (SMA).
There are a number of factors affecting price action and the British pound headed into the weekend. There was a major terror attack at the Kabul airport that killed and wounded many including a dozen U.S soldiers. The coronavirus (Covid-19) pandemic is also in the headlines.
The United Kingdom is seeing more and more new cases. On Wednesday, 35,000 new cases were reported in the UK. That was the highest daily number since mid-July. Right now, the United Kingdom is reluctant to impose new coronavirus restrictions.
Today, Federal Reserve Chair Jerome Powell is scheduled to deliver virtual remarks at the annual Federal Reserve economic symposium at Jackson Hole. Forex traders will be listening for any clues regarding the future of interest rates and monetary policy.
As far as economic data is concerned, the U.S. will publish the Federal Reserve’s preferred measure of inflation, the PCE inflator. The U.S. is also publishing wholesale and retail inventory data.
The United Kingdom has no economic data on the calendar. Germany is releasing monthly import prices. France is publishing their monthly consumer confidence index.
Daily British Pound Technical Analysis (GBP/USD)
Looking at the above daily GBP/USD MT 4 price action chart, the British pound has turned south and below the key upside barrier at 1.3785. This upside barrier has been capping recovery attempts since mid-August. The 14 day MACD momentum indicator is trending lower and the GBP/USD Forex market is trading below all three key daily simple moving averages.
While below immediate technical support at 1.3725, the next downside barrier lines up the double bottom low price of 1.3695. The next downside barrier is at 1.3670 then 1.36 comes into focus.
On the upside, technical resistance lines up at 1.3770 with 1.3785 then coming into play. Further up, the next upside barrier is at 1.3830 then another lines up at 1.3895.
