British Pound remains under Pressure against the Dollar

The British pound us under pressure headed into Thursday’s trade session. Price action in the benchmark GBP/USD currency exchange rate is trading below 1.4110 and challenging the monthly rising trend line as well a key weekly support level.

This week’s economic calendar has been light and Thursday is no exception. The United Kingdom has no major macroeconomic data releases on the docket today. Neither does the European Union or Canada. The world’s largest economy does have some data events on their schedule.

The United States, through the Labor Department, will publish weekly initial and continuing jobless claims. The U.S. is also publishing monthly core and headline durable goods orders data as well as monthly pending home sales.

President Joe Biden has ordered his intelligence services to ascertain the origin of the global coronavirus pandemic (Covid-19). They have ninety (90) days and will release their findings.

Also, affecting financial market sentiment, a January 6 insurrection investigation will likely be held up in the U.S. Senate. New York has also announced a criminal grand jury into former President Donald Trump’s business has been launched.

Daily British Pound Technical Analysis (GBP/USD)

Looking at the above four hour GBP/USD MT 4 price action chart, the MACD histogram is signaling more bearish price action as the British pound looks to break below the downside barrier in play at 1.4115. Price is currently below this level.

The next downside barrier for the British pound lines up at 1.41 with the one hundred (100) hour simple moving average (100) at 1.4085 then coming into play. A sustained close below the 100 hour simple moving average brings the key psychological level at 1.40 onto the radar.

On the upside, immediate technical support lines up at 1.4150 with a daily close above this barrier challenging the round number at 1.42 next. A sustained close above 1.42 opens the door to challenge the monthly high price point at 1.4235 and then bringing 1.4245 back into focus.