Forex Marketz Daily Forex News – Fully Markets Update
The British pound is wobbling around 1.38 against the U.S. dollar. Forex traders are waiting on key UK retail sales data as well as purchasing managers’ indices from the United Kingdom and United States. The euro area will also be publishing purchasing managers’ indices today.
The GBP/USD Forex market has been following Brexit news closely. UK Prime Minister Boris Johnson is showing he is ready to compromise with the Northern Ireland (NI) protocol. This could finally break the current stalemate with the European Union.
The Bank of England will be watching today’s economic data very closely. The Old Lady is on the road towards normalizing monetary policy by hiking rates before the end of the year and as early as next month.
Daily British Pound Technical Analysis (GBP/USD)
Looking at the above daily MT 4 price chart, the British pound has been recovering from 1.34 but is running into the 200 day simple moving average which is now capping the upside. There is also a descending trend line from July in this area as well as the top of a three week old rising trend channel.
The rising trend line channel resistance is in play near 1.3850-55. If the British pound sees a break above this, the next upside barrier lines up at 1.39.
Also of note, the technical indicators support more upside room for the GBP/USD currency exchange rate. However, traders need a daily close above 1.38 for more possible buying at this point.
The next upside barrier comes into play at 1.39 before the September swing high at 1.3915 comes into the picture. A close above 1.3915 bring a congestion zone at 1.3960 to 65 into focus.
While below 1.38, the swing low price point, during the North American trade session, comes into play at 1.3735. The next downside level lines up at 1.3730.
The next layer of technical support lines up at 1.37 and is the lower barrier of the rising trend channel. A daily close below 1.37 opens the door for 1.3650 then 1.36.
