The British pound is trading around 1.3970 as we head into Friday’s trade session. The benchmark GBP/USD Forex market refreshed multi-day high price points on Thursday and is above the one hundred (100) day simple moving average for the first time since 23 June.
Looking at the economic calendar for Friday, the United Kingdom has no scheduled releases. The United States will publish the U.S. Federal Reserve’s preferred measure for inflation. This is the monthly core PCE inflator.
The University of Michigan will published their revised monthly consumer sentiment index and the Chicago Fed will release July’s manufacturing purchasing managers’ index (PMI).
The euro area also has a busy economic calendar. Germany and Italy will release initial quarterly gross domestic product (GDP) data. Italy is publishing their monthly consumer price index (CPI) and their monthly unemployment rate.
The Eurozone is publishing their monthly unemployment rate as well. The Eurozone will also publish their monthly flash consumer price index and Spain will release economic growth numbers. Finally, France is publishing monthly consumer spending data. Switzerland will release their KOF economic barometer.
Daily British Pound Technical Analysis (GBP/USD)
Looking at the above daily MT 4 price action chart, the 14 day relative strength index (RSI) and MACD momentum indicators are looking positive. The British pound has initial technical resistance at a congestion in play at 1.4005 to 1.4010.
The next layer of technical resistance for the British pound comes into play at 1.41 with 1.4190 then coming into focus. Above 1.4190, the next technical resistance barrier lines up at 1.4250.
On the downside, the GBP/USD Forex market has initial technical support at the 100 day simple moving average. This level lines up near 1.3920.
The next layer of technical support comes into play at 1.3910 with 1.39 lining up next. The 200 day simple moving average and 2 July low price point lines up at 1.3730.