Market Participants May Keep a Close Eye on the Pound, Which Is Facing Resistance
22.07.2024
- Hong Kong Consumer Price Index
- Turkey's Central Government Debt
Last weekend, the foreign exchange market saw a US dollar buying trend, making the US dollar the strongest currency. The GBP/USD pair fell from 1.2950 to 1.2900. It broke below the 200-period SMA on the hourly chart. On the 4-hour chart, it has continued to trade below the 20-period MA, and on the daily chart, it has fallen for two consecutive days.The price is reverting from the +2σ level of the Bollinger Bands toward the 10-period moving average, which is close to the centerline.
Among European currencies, the GBP/JPY pair stood out for its weakness, even as other yen crosses stabilized. GBP/JPY fell from 204.214 to 202.952, with price action fluctuating around the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the price has been gradually edging lower toward the 200-period simple moving average (SMA) support line, while on the daily chart, it has broken below the 20-period moving average (MA), and the RSI has fallen from 80 to 46.
Today, New Zealand’s trade balance will be released at 7:45, China’s prime lending rate at 10:15,at 4:00 PM, Turkey’s year-end CPI forecast; at 5:00 PM, Taiwan’s employment statistics and the Philippines’ retail sales; at 5:30 PM, Hong Kong’s Consumer Price Index; at 9:00 PM, Mexico’s retail sales;Philippines’ money supply, at 21:30 the U.S. Chicago Fed National Activity Index, at 23:30 Turkey’s central government debt, and at 24:30 U.S. 3-month Treasury bill auction and U.S. 6-month Treasury bill auction. We will carefully monitor the movement of the pound, which is facing resistance on the upside.
Author: Keisuke Sakurai
