The British Pound Challenges the 200 DMA

Looking at the headline GBP/USD currency exchange rate and above daily MT 4 chart, the British pound (GBP) is challenging the two hundred (200) day moving average as it tries to make a meaningful recovery against the U.S. dollar (USD).

Right now, that 200 day moving average has capped British pound gains over the last few trade days as the safe haven U.S. dollar continues to get some support.

There is not a lot of data on today’s economic calendar. Only Switzerland is releasing key data, in the form of their monthly unemployment rate. With a lack of economic data on the economic calendar, Forex traders will watch Covid-19 (coronavirus) headlines as cases continue to spike in the United States.

These cases are forcing states to reverse re-opening orders. Which, in turn, could derail the economic recovery. Also, Brazilian President Jair Bolsonaro has tested positive for the Covid-19 virus.

The economic calendars in the United Kingdom and the European Union have no economic data releases scheduled for today. The United States will publish low impact monthly credit data and weekly crude oil inventory levels. The Canadian economic calendar is also quiet today.

Daily British Pound Technical Analysis (GBP/USD)

Looking at price action on the above daily MT 4 chart, the British pound notes the first layer of technical resistance in play at the 200 day moving average.

This upside barrier lines up at 1.2590. A daily close above this first layer of resistance will then see a challenge of the upside barrier in play at 1.26. The 16 June high price point at 1.2688 would then come into play. The next layer of technical resistance lines up at the June high price point at 1.2815.

On the downside, if the GBP/USD fails at the 200 day moving average, the first layer of technical support lines up at 1.2515. The next downside level lines up at the Friday low price point in play at 1.2438.
The next layer of technical support lines up at 1.24 with the June low price point then coming into focus. That support level lines up at 1.2250.