Looking at the GBP/USD currency exchange rate and above one (1) hour chart, the British pound is trading near 1.3135 during the Asian trade session.
The GBP/USD Forex market is trading quietly ahead of the Bank of England (BOE) monetary policy and rate decision due later today.
The United States is releasing weekly unemployment claims data as well as their weekly continuing claims data. As mentioned above, the Bank of England will announce their monthly rate decision as well as monetary policy decision during the European trade session.
This also includes the BOE monetary press statement. This will likely increase price volatility with the British pound. The Unite Kingdom will release monthly construction purchasing managers’ index (PMI) data as well as their monthly asset facility purchases.
The European Union has a fairly quiet calendar. Germany is publishing monthly factory orders data and Italy will release monthly industrial production data. The Canadian economic calendar has no macroeconomic data on the schedule.
Daily British Pound Technical Analysis (GBP/USD)
Looking at price action on the above hourly chart, the British pound (GBP) had recently recovered from a low price point at 1.3108 and has seen two days of gains against the U.S. dollar (USD). The MACD histogram is still showing an upside trend in the GBP.USD currency exchange rate. Forex traders should note a downward sloping trend line, from 31 July, in play at 1.3160.
A daily close above this level opens the door to challenge the upside barrier in play at March high price point. This technical upside barrier is at 1.32. However, there is a key upside barrier to watch at the monthly July high price point to watch. This upside barrier is at 1.3170.
Any break above 1.32 opens the door to challenge the technical upside barrier in play at 1.3260 then the December 2019 high price point at 1.3515. The first layer of technical support lines up at 1.31 with the next downside barrier coming into play at 1.3025.
Below this level, the two hundred (200) hourly moving average (HMA) at 1.3010 comes into play. The next downside barrier then lines up at the round 1.30 level.