British Pound Stays above the 50 Day SMA

Looking at the British pound (GBP), on the above daily GBP/USD MT 4 chart, this headline currency exchange rate is still trading above the fifty (50) day simple moving average (SMA). The Cable is also above the longer term one hundred and two hundred (100, 200) day simple moving averages.

Momentum for the British pound remains positive even with the recent weakness exhibited. Forex traders should look for continued strength in the GBP/USD Forex market while above the rising trend channel support lines. This uptrend channel has been in play since late September. This layer of technical support lines up at 1.3050.

There is not much on the economic calendar headed into Monday. Forex traders will be watching any headline surrounding the ongoing free trade talks between the United Kingdom and the European Union. Both sides have set a deadline to close gaps on Sunday 13 Dec. 20.

However, both the euro area and the United Kingdom have until 31 December to reach a trade deal. That is the date that Britain, leaves the European Union and the divorce deal is final.

The Prime Minister of the United Kingdom has said that the UK must be ready for the eventuality of a no-deal Brexit. The European Union is also sceptical of closing the gaps, fisheries, governance and a level playing field on time. The United Kingdom is also preparing to send its navy to protect fishing lanes.

Daily British Pound Technical Analysis (GBP/USD)                                               

Looking at the above GBP/USD MT 4 chart, the British pound notes near-term technical resistance lining up at the November swing high price point.

This upside barrier is at 1.3310. The next layer of technical resistance comes into play at 1.34. Above this level is the December swing high price point at 1.3480 and then the 2020 high price point at 1.3540.

On the downside there is a downside barrier lining up at 1.31. The next layer of technical support is in play at 1.30 with 1.2850 the coming up on the radar. The next layer of technical support is then at 1.28.