Looking at the benchmark GBP/USD currency exchange rate and above daily MT 4 chart, the British pound (GBP) is under pressure against the U.S. dollar (USD). There is a lot, fundamentally, pressuring this Forex market lower.
The British pound, which has been acting like a sensitive linked currency and not economic data driven, is reacting to continued Brexit news. There is still not a lot of movement towards a free trade agreement between the United Kingdom and the European Union.
Also, currency traders are digesting news the Britain’s Prime Minister, Boris Johnson, is openly considering another national lockdown or stricter social distancing guidelines as the coronavirus (Covid-19) is still wreaking havoc. There has been a jump in new cases not only in the United Kingdom but in the European Union and the United States.
Looking at the economic calendar for today, the United Kingdom will release their monthly public sector net borrowing data as well as the private monthly CBI industrial orders expectation index. The European Union will release consumer confidence data.
The United States does not have a lot on the economic calendar. The Richmond Federal Reserve will publish their monthly manufacturing index and the U.S. will also publish monthly existing home sales data. Canada has no macroeconomic events scheduled for release today.
Daily British Pound Technical Analysis (GBP/USD)
Looking at the above daily MT 4 chart, The British pound has bounced off the intraday low of 1.2803 during the Asian trade session as Forex traders are trying to trim some losses. Looking at the MACD histogram, this technical indicator is still trending lower.
With that said the key layer of technical resistance lines up at a descending trend line in play since 1 September. This upside barrier is at 1.2930. A daily close above the trend line will open the door to challenge the fifty (50) day simple moving average (SMA) that lines up at 1.3010. The next upside barrier is in play just above the 50 day SMA at 1.3015.
On the downside, the GBP/USD Forex market notes the first layer of technical support lining up at the 21 July high price point monthly low price point. This congestion zone is in lay at 1.2762 to 1.2768. Other downside barriers to watch come into plat at 1.2720 and the 9 July high price point at 1.2670.