British Pound Remains below the 200 DMA

Looking at the British pound (GBP) and the headline GBP/USD currency exchange rate via the above daily MT 4 chart, this Forex market is still trading in a narrow trade range within a falling triangle wedge pattern.

Today’s economic calendar is rather light. The United States has no economic data on the schedule. The United Kingdom also has no economic data scheduled to be released. The Eurozone is publishing both monthly and annual factory gate prices.

This is the producer price index or (PPI). The Eurozone is also releasing their current account and Germany will publish their monthly BUBA report.

The sentiment linked British pound is likely to react more to ongoing Covid-19 (coronavirus) headlines as California is now locking down to contain the sharp spike in new cases. States like Florida and Texas are also under pressure and Leicester, in the U.K., has also reported new cases of Covid-19.

Daily British Pound Technical Analysis (GBP/USD)

Looking at the above daily price action chart the British pound is still showing some signs of upward momentum as the GBP/USD Forex market is still trading above the fifty (50) and one hundred (100) day moving averages. With that said, the two hundred (200) day moving average is still capping gains.

There is near term support lining up from the July swing high price point at 1.2535. A daily close below this layer of support opens the door to challenge the next layer of technical support at 1.2475. This was the mid-July low price point.

The next layer of next layer of technical support lines up at 1.2340 with the downside barrier lining up at 1.2250 then coming into focus.

On the upside, the stubborn level that has capped gains this month at 1.2670 remains the first layer of technical resistance to watch. The next upside barrier lines up at 1.27, which is supported by that 200 day moving average. The June high price point at 1.2815 would then come into focus.