The British pound continues to consolidate just above 1.38 and the two hundred (200) day simple moving average.
It should also be noted that the benchmark GBP/USD currency exchange rate is trading within a seven week old symmetrical triangle as Forex traders decide on their next move.
Today, currency traders are waiting on key labor numbers from the United Kingdom. The UK will publish their monthly claimant count, monthly unemployment rate and average hourly earnings.
The Bank of England (BOE) will also be watching these labor figures as they are closely eyeing rising consumer inflation.
The BOE is trying to decide if they will ease back on monthly asset purchases as well as the future of their monetary policy. With that said, strong labor numbers would be good for the British pound buyers.
The world’s largest economy, the United States, will publish their monthly core and headline consumer price index (CPI). The euro area’s economic calendar is quiet today.
The head of the German central bank is speaking today as are a couple other members of the ECB Governing Council. Canada will publish monthly manufacturing sales data.
Daily British Pound Technical Analysis (GBP/USD)
Looking at the above daily MT 4 price action chart, the GBP/USD Forex market is still above the 200 day simple moving average as the British pound inches higher. While above the 200 day simple moving average, the GBP/USD bulls remain hopeful for some gains.
A daily close above the triangle’s resistance line that comes into play at 1.3865 opens the door for the fifty percent Fibonacci level. The 61.8 percent Fibonacci level then comes into the picture. Respectively, these upside barriers line up at 1.3910 and 1.3990.
On the downside, the 200 day simple moving average and the 38.2 percent Fibonacci level lines up at 1.3830. The next layer of technical support is at the bottom of the triangle at 1.3760.