Looking at the benchmark GBP/USD currency exchange rate, the British pound is still trading above the key downside barrier in play at 1.3670. This is the low price point for March and a double bottom, as noted on the above daily MT 4 price chart.
With that said, price momentum is skewed lower for the GBP/USD Forex market after scaling back some short term gains last week. Also, price action is below the fifty (50) day simple moving average and is looking to challenge the one hundred (100) day simple moving average and lower.
The economic calendar for Monday is pretty quiet kick the week off. The United Kingdom has no economic data releases. Eric Rosengren, president and CEO of the Federal Reserve Bank of Boston is giving commentary on Monday.
The European Union is publishing key monthly retail sales data. British pound traders will be watching coronavirus headlines, which include rising Covid-19 infections in the euro area as well as falling cases in the United Kingdom.
There are persistent problems with the UK AstraZeneca coronavirus vaccine could weigh on the pound’s price action. As of now, medical regulators in both the United Kingdom and European Union have issued warnings of minor blood clot problems. Helping price action in the GBP/USD Forex market is that pubs, restaurants and other retail services establishments in the United Kingdom will reopen this week.
Daily British Pound Technical Analysis (GBP/USD)
The 14 day relative strength index (RSI) is not near oversold and above the thirty level. This could be a good sign for British pound sellers which could send the GBP/USD Forex market lower. There is key downside support, as mentioned above, lining up at the 100 day simple moving average at 1.3670.
The next layer of technical support lines up at the February low price point at 1.3655. The next downside barrier lines up at 1.3450 with 1.33 then coming into focus.
On the upside, the former March double bottom at 1.3775 is the first resistance level to monitor. The next upside barrier lines up at the 50 day simple moving average at 1.3850. The next resistance level lines up at 1.3920 with 1.40 then coming into reach.