The British pound is continuing to trade around a three week old price point. The GBP/USD currency exchange rate remains under pressure below the fifty (50) day simple moving average. This is Forex market is also below the two hundred (200) day simple moving average.
Today’s economic calendar continues with monthly purchasing managers’ indices (PMI). France and Italy will publish their monthly manufacturing monthly purchasing managers’ indices.
The United States will release weekly American Petroleum Institute (API) crude oil data. Canada will release monthly home building permits data. The United Kingdom has no top tier economic data events scheduled for Tuesday.
Daily British Pound Technical Report (GBP/USD)
Looking at the above daily GBP/USD daily MT 4 price chart, the 14 day MACD histogram is looking bearish could signal more possible losses for the British pound. The GBP/USD currency exchange rate refreshed a three week low price point on Monday.
Also, the British pound continues to trade below the fifty and two hundred day simple moving averages. The GBP/USD Forex market has been on the defensive since Friday and trading around 1.3660 headed into Tuesday.
On the downside, the first layer of technical support lines up at a horizontal barrier at 1.3575. This level has held several times since 20 July. A daily close below 1.3575 opens the door for the congestion zone in play at 1.3550 to 1.3545. The next layer of technical support lines up at the year low price point at 1.3410.
On the upside, the first layer of technical resistance lines up at the 50 day simple moving average. This upside barrier is near 1.3712. The fifty percent Fibonacci level lines up at 1.3830.
The next upside barrier is at the 200 day simple moving average near 1.3850/1. The next layer of technical resistance to come into focus is the September high price level at 1.3915.