Forex Marketz Daily Forex News – Fully Markets Update
Looking at the British pound (GBP) on the above daily MT 4 chart, the GBP/USD currency exchange rate remains mildly bullish as we head into the weekend. This comes after falling from 1.3235 to 1.3225 during the Asian trade session.
There is strong support for the British pound against the U.S. dollar (USD) lining up at the 21 day moving average which is holding up.
Today’s economic calendar is quite busy. Friday, as we close the week, is all about the flash purchasing managers’ indices (PMI). The United Kingdom will publish their monthly flash manufacturing purchasing managers’ index (PMI) as will the United States. The European Union is also in the spotlight with key flash PMI data.
Germany, the Eurozone’ largest economy will publish their monthly flash manufacturing and services purchasing managers’ indices (PMI). The second largest economy in the Eurozone, France, will also publish their monthly flash manufacturing and services purchasing managers’ indices (PMI).
The Eurozone is also scheduled to release their combined flash services and manufacturing purchasing managers’ indices. Canada is releasing key monthly core and headline retail sales data.
The headline number is not as important as the high frequency and forward looking economic data. This means Forex traders should look at the labor sub-indices closely.
Daily British Pound Technical Analysis (GBP/USD)
Looking at price action on the above MT 4 chart, with the British pound still trading above the 21 day moving average and near the monthly and yearly high price points, the GBP/USD Forex market can still challenge the upside barrier in play at 1.3268 before moving towards the 31 December high price point in play at 1.3285.
With that said, Forex traders should also note the overbought signal with the relative strength index (RSI). If the GBP/USD does continue higher, the next layer of technical resistance lines up at 1.3285 with the key level at 1.33 then coming into focus.
A daily close below the 21 day moving average at 1.3070 opens the door to challenge 1.30 then the technical layer of support in play at the monthly low at 1.2980. The next layer of support is at the monthly June high price point at 1.2813.
