Forex Marketz Daily Forex News – Fully Markets Update
The British pound remains within a broad range against the U.S. dollar. However, the GBP/USD currency exchange rate remains pressured to the downside as Forex traders worry about rising price pressures and the spread of the highly contagious Delta variant of the coronavirus (Covid-19).
Today, the United Kingdom will end most of their Covid-19 restrictions. This day has been dubbed “Freedom Day.” However, the Delta variant is causing a spike in new coronavirus cases, hospitalizations and deaths in the United Kingdom. The United States is also seeing the Delta variant spread rapidly among the large population of those not vaccinated.
Forex traders are also worrying about the rise in global inflation. Federal Reserve Chair Jerome Powell, during his semi-annual testimony before Congress, said that the spike in inflation could last for several months but is only temporary.
He also said that the U.S. central bank will continue to debate tapering monthly asset purchases. The U.S. economic recovery still has a way to go before the Federal Reserve even considers tightening economic policy. As far as economic data is concerned, the United Kingdom has no data scheduled for release on Monday and the United States will see the NAHB publish their monthly housing index. Japan will release monthly core and headline consumer price index (CPI) numbers.
Daily British Pound Technical Analysis (GBP/USD)
Looking at the above daily MT 4 price action chart, the British pound is trading in a broad range capped to the upside at 1.40 and to the bottom at a double bottom in play at 1.3670. The 14 day MACD histogram is looking positive which is a good signal for the GBP/USD Forex market.
The British pound is also below the fifty and one hundred (50, 100) day simple moving averages and the two hundred (200) day simple moving average is sloping higher. This presents a mixed outlook for GBP/USD price action.
On the downside, immediate technical support lines up at 1.38 with the next downside barrier coming into play at the monthly low price point at 1.3670. The next support level is at 1.3565.
On the upside, immediate resistance is at the July high price point of 1.3910. The next upside barrier lines up at 1.40 with 1.4140 and 1.4250 then coming into play.
