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British Pound finds Support at the 10 DMA

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Looking at the headline GBP/USD currency exchange rate and above daily MT 4 chart, the British pound is trading above the short-term ten (10) day moving average (exponential). The GBP/USD Forex market is trading around 1.3070 during the Asian trade session.

There is quite a bit of labor data on the British economic calendar. This should cause some volatility with the British pound (GBP). The United Kingdom is releasing closely monitored labor data.

The United Kingdom is releasing their unemployment rate, monthly claimant count change and three month average hourly earnings change. The United States is releasing their monthly headline and core factory gate prices. This is known as the producer price index (PPI).

Europe will release monthly ZEW economic sentiment surveys for both the European Union and the largest economy in the Eurozone, Germany. Canada has no economic data releases today.

Daily British Pound Technical Analysis (GBP/USD)

Looking at the above MT 4 price chart, the GBP/USD Forex market is finding, as mentioned above, some support at the ten day exponential moving average (EMA). There is also a rising trend line in play since 14 April proving support at a congestion zone in play at 1.3035 to 1.30. The relative strength index (RSI) is also signaling indecision as it is just above 70 and overbought.

On the upside, the GBP/USD currency exchange rate note a key upside barrier lining up at 1.32. This is the March high price point. A sustained close above this level opens the door to challenge 1.3215. The next upside barrier lines up at 1.3278/80.

On the downside, the first layer of technical support lines up at 1.30. A sustained close below this level opens the door to challenge the next downside barrier in play 1.29. The next layer of technical support lines up at the monthly June high price point at 1.2815.

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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