Forex Marketz Daily Forex News – Fully Markets Update
Overall, headed into a new trade week, the British pound remains pressured lower against the U.S. dollar.
The GBP/USD currency exchange rate is trading below the fifty, one hundred and two hundred (50, 100, 200) day simple moving averages (SMA). All three of these key simple moving averages, however, are sloping higher.
The economic calendar is quiet on Monday. Neither the United Kingdom nor the United States has any key events on their calendars. The euro area is also quiet. Germany will publish monthly WPI data. Switzerland, Canada and Australia also have no economic data scheduled for release.
Also, the sentiment linked British pound will be driven by ongoing coronavirus (Covid-19) headlines as well as ongoing legal issues between the European Union and United Kingdom over Ireland.
As far as Covid-19 is concerned, the United Kingdom is scheduled to end most of their remaining Covid-19 restrictions on 19 July.
However, the spread of the more infectious Delta coronavirus variant could be a problem. The Delta variant is also an issue in the United States.
Daily British Pound Technical Analysis
Looking at the above daily MT 4 price action chart, the 14 day relative strength index (RSI) is near thirty (30) and signaling oversold conditions. This indicates more possible downside momentum for the GBP/USD Forex market.
The British pound has immediate downside support at the July low price level at 1.3735. The next layer of support lines up at the 200 day simple moving average at 1.3670.
There is also a double bottom in play here. The next downside barrier lines up at 1.3580 before 1.3410 comes into focus.
On the upside, there initial is upside resistance lining up at 1.38. The next upside barrier then comes into play at the May swing high at 1.39. The next upside barrier lines up at the 50 day simple moving average at 1.4010.
