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British Pound Tries to Break above $1.3028 Again

british pound

Looking at the British pound (GBP) on the above daily GBP/USD MT 4 chart, this Forex market is trying to challenge 1.3028 during the early Asian trade session. This key upside barrier held yesterday and is once again proving to be a formidably layer of technical resistance.

Today, the United Kingdom will release their monthly CB leading index. The Bank of England (BOE), their central bank, will publish their credit conditions survey and there will be commentary from a Monetary Policy Committee (MPC) member. There are no economic releases on the European Union Calendar today.

The United States is publishing weekly labor data from the Department of Labor. This data includes weekly first time unemployment claims as well as weekly continuing claims data. These remain worrisomely high as the coronavirus (Covid-19) virus still wreaks havoc around the United States.

Covid-19 is still suppressing demand and keeping businesses from not only hiring but still cutting back on existing jobs. The Philadelphia Fed will release their monthly manufacturing index as well. The private firm ADP will publish, for Canada, their monthly non-farm payroll change.

Daily British Pound Technical Analysis (GBP/USD)

Looking at the GBP/USD currency exchange rate and above MT 4 chart, the 14 day MACD histogram is trending higher indicating possible strength for the British pound.

This Forex market is also trading above the one hundred (100) day exponential moving average (EMA) as traders look to possibly challenge the monthly high price point at 1.3082.

With that said, the British pound needs to break above 1.3028 in order to see a meaningful rise. A daily close above 1.3082 will open the door to challenge the round number at 1.31 with the August high price point at 1.3185 then coming into play.

On the downside, a daily close below the congestion zone in play at 1.2860 to 1.2855 will open the door to challenge the downside barrier in play at 1.2820.

The September monthly low price point at 1.2760 then comes into focus. The next downside barrier line up at 1.2720 then the August monthly low price point at 1.2675.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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