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British Pound Trades around the 10 DMA

british pound

Looking at the British pound (GBP) on the above GBP/USD daily MT 4 chart, this key Forex market tried to bounce off the one week low price point on Thursday but this Forex market has since moved back lower.

The British pound is currently trading around the ten (10) day moving average (DMA) as the almighty U.S. dollar (USD) is trying to extend gains against the British pound ahead of key U.S. labor data due out during the North American trade session.

At 8:15 am EST, the U.S. labor department will publish their monthly non-farm payroll (NFP) report, their monthly unemployment rate, hourly wage change and labor participation rate for the month of August. The United Kingdom is publishing monthly construction purchasing managers’ index (PMI) data.

The Eurozone has some economic data on schedule. Germany will release their monthly factory orders and France is publishing their monthly government balance.

Canada is releasing their monthly unemployment change, unemployment rate and the private monthly Ivey purchasing managers index (PMI).

Daily British Pound Technical Analysis (GBP/USD)

Looking at price action on the above price action chart, the GBP/USD currency exchange rate is looking pressured to the downside. The MACD histogram is trending bearish as this Forex looks to challenge the key downside barrier in play at 1.3220.

A daily close below this first layer of technical support opens the door to challenge the 6 August high price point that lines up at 1.3185. The next downside barrier comes into play at 1.3170.

If the GBP/USD Forex market moves higher, snapping a three day winning streak for the greenback, the first upside barrier comes into play at 1.3350. The next layer of technical resistance comes into play at 1.34. The level at 1.34 is a key upside barrier.

A sustained close above this layer of technical resistance will shift focus to a rising trend lines in lay since 10 June. This upside barrier is in play at 1.3415 with the technical resistance level of 1.3420 then coming into play.

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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