Markets may be keeping a close eye on the pound, which is facing resistance
22.07.2024
- Hong Kong Consumer Price Index
- Turkish Central Government Debt
Last weekend, the foreign exchange market saw a rally in the U.S. dollar, making it the strongest currency. The GBP/USD pair fell from 1.2950 to 1.2900. It broke below the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, it has continued to trade below the 20-period moving average (MA), and on the daily chart, it has fallen for two consecutive days. The pair has retreated from the +2σ line of the Bollinger Bands back toward the 10-period MA, which is close to the centerline.
While other yen crosses stabilized, the pound-yen pair stood out with its notable decline. The pound-yen fell from 204.214 to 202.952, moving across the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the price has been gradually edging lower toward the support line at the 200-period simple moving average (SMA), while on the daily chart, it has broken below the 20-period MA, and the RSI has dropped from 80 to 46.
Today’s schedule includes New Zealand’s trade balance at 7:45, China’s prime lending rate at 10:15, Turkey’s year-end CPI forecast at 16:00, Taiwan’s employment statistics and the Philippines’ retail sales at 17:00, Hong Kong’s consumer price index at 17:30, Mexico’s retail sales at 21:00,Philippines Money Supply, 9:30 PM US Chicago Fed National Activity Index, 11:30 PM Turkey Central Government Debt, and 12:30 AM US 3-month Treasury bill auction and US 6-month Treasury bill auction. We will closely monitor the movement of the pound, which is facing resistance on the upside.
Author: Keisuke Sakurai
