Forex Marketz Daily Forex News – Fully Markets Update
Looking at the British pound (GBP) on the above GBP/USD daily MT 4 chart, the headline GBP/USD currency exchange rate, is trading back below the short term fifty (50) day simple moving average (SMA). However this Forex market is trading above the one hundred and two hundred (100, 200) day simple moving averages (SMA).
The economic calendar starts out slow as far as economic data is concerned. The International Monetary Fund (IMF) is holding their meeting on Sunday to kick the week off. Also speaking, on Sunday, is Bank of England Governor Andrew Bailey. On Tuesday Bank of England monetary policy member, and Deputy Governor of the central bank, Sir Jonathan Stephen Cunliffe is speaking.
As far as economic data is concerned, the United States has nothing scheduled on Monday. The Eurozone will release monthly construction data and their largest economy, Germany, will release their monthly BUBA report.
Price action for the British pound will be driven by any news surrounding the coronavirus as well as ongoing, tense, free trade agreement (FTA) talks between the United Kingdom and the European Union.
While some progress has been made, talks are on the brink of collapse and the United Kingdom is preparing to crash out of the free trade zone at the 31 December deadline with no FTA in place.
Daily British Pound Technical Analysis (GBP/USD)
Looking at price action, on the above daily MT 4 chart, the British pound sees technical support lining up at 1.2860. A daily close below this first layer of technical support will open the door to challenge the next downside barrier in plat 1.28.
Below this level, the 200 day simple moving average comes into focus at 1.2705. The September monthly low price point then comes into focus at 1.2665.
On the flip side, the GBP/USD Forex market notes the first layer of technical resistance lining up at 1.30. This level has held two times over the past week.
If broken, the October high price in play at 1.3085 is the next upside barrier with 1.3195 then coming into focus. The technical upside barrier at 1.3270 then comes onto the radar.
