Forex Marketz Daily Forex News – Fully Markets Update
Looking at the benchmark GBP/USD currency exchange rate, the British pound was unable to recover falling to a low price point at the early-February lows. This benchmark Forex market is currently trading just above 1.3690 during the Asian trade session on Thursday.
The benchmark GBP/USD Forex market, as seen on the above daily MT 4 price action chart, has broken below the fifty (50) day simple moving average (SMA) and continues to extend its losses. The British pound is also trading below a rising trend line in play from 11 January 2021.
After yesterday’s flash purchasing managers’ indices from the United States, euro area and United Kingdom, today’s economic calendar is not quite as busy. The United Kingdom is releasing monthly CBI realized sales data and the European Union will publish monthly M3 monetary supply numbers.
The Swiss National Bank (SNB) is announcing monetary policy today. The United States is releasing Labor Department weekly initial jobless claims and weekly continuing unemployment claims data.
Daily British Pound Technical Analysis (GBP/USD)
Looking at price action on the above chart, the 14 day relative strength index (RSI) is moving lower, rather sharply as the oversold signal strengthens. However the British pound still could have some further downside.
The one hundred day simple moving average at 1.3622 is the first downside barrier with the 29 June 2020 low price point at 1.3550 then coming into focus. Around here, Forex traders should start watching the relative strength index more closely for an oversold signal.
On the upside, there is immediate technical resistance in play at a former support level at 1.38. This is also a psychological technical barrier. The next upside barrier lines up at the fifty simple moving average.
This upside barrier is at 1.3828. The next layer of technical resistance lines up at 1.3830 with 1.4020, a monthly high price point, then coming into focus.
