Looking at the Cable, also known as GBP/USD currency exchange rate on the above daily MT 4 price chart, the British pound is now looking to challenge 1.3260.
The Cable is now trading above the short term ten (10) day simple moving average (SMA) as the recovery continues against the almighty U.S. dollar. The Cable is also trading above a rising trend line that has been in play since 2 November with a 14 day MACD histogram still signaling that the British pound has more strength left.
The United Kingdom will be releasing monthly consumer and producer inflation data today. This includes the core and headline consumer price index as well as the producer price index (PPI). The PPI is factory gate prices. The United Kingdom is also releasing their monthly housing price index (HPI) and monthly production output data.
The United States is publishing monthly housing starts as well as monthly building permits. The European Union will release their final monthly flash consumer price index and Canada is also publishing key consumer inflation data during the North American trade session.
Daily Cable Technical Analysis (GBP/USD)
Looking at the above daily MT 4 price chart, the benchmark GBP/USD Forex market is looking to take on the upside barrier in play at 1.3260. A daily close above this level opens the door to challenge the next layer of technical resistance at the round 1.33 number. The monthly high price then comes into play. This upside barrier lines up at 1.3315.
A sustained close above 1.3315 opens the door for the key technical resistance level at 1.34 with the September high price at 1.3485 then coming into focus.
On the downside, a daily close below 1.3195 will challenge last week’s low price point that lines up at 1.3105. The next downside barrier comes into play at 1.31 with the monthly low price then coming into focus. That level is at 1.2854.