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British Pound sees its Largest Daily Gain in 7 Months

british

Looking at the British pound (GBP) on the above daily GBP/USD MT 4 chart, this Forex market is extending its largest daily gain in seven months during Wednesday’s trade session. There is a level of technical resistance at 1.3137 but this currency exchange rate is still above the short term rising trend line.

Today, British pound traders could be influenced by what Bank of England and Monetary Policy Committee (MPC) member Haldane has to say. The United Kingdom is also publishing monthly CBI industrial orders expectations. The Eurozone is releasing it monthly consumer confidence index.

The United States has ramped up its trade tensions with China. According to Secretary of State Mike Pompeo, the U.S. will add another six Chinese firms to the list of foreign missions. The world’s largest economy will publish their monthly CB leading index as well as monthly existing home sales. The Labor Department is releasing weekly first time unemployment claims as well continuing claims labor data. Canada has no economic releases scheduled today.

Daily British Pound Technical Analysis (GBP/USD)

Looking at the above GBP/USD priced action chart, the relative strength index (RSI) is still flashing a bullish signal which means the British pound might have some gas left in the tank.

With that said, the first upside barrier lines up at the September monthly low price point at 1.3137. A daily close above this price point will open the door to challenge the round number at 1.32. A sustained close above 1.32 will bring focus towards the September monthly closing high at 1.3485.

On the downside, a break below the former technical resistance now turned support in play at 1.3115 opens the door to challenge the next layer of technical support in play at 1.31. The next downside barrier lines up at the 12 October high price point at 1.3080.

The fifty (50) day simple moving average at 1.3015 then comes on the radar. Just below the 50 day SMA is the key downside support level at 1.30 and the one hundred (100) day simple moving average at 1.2856.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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