BREXIT – British Pound (£) ⇨ US Dollar ($)(GBPUSD) – Trump, Macron and Theresa May

BREXIT – British Pound (£) ⇨ US Dollar ($)(GBPUSD) – Trump, Macron and Theresa May

BREXIT – British Pound (£) ⇨ US Dollar ($)(GBPUSD) – Trump, Macron and Theresa May

TRUMP’s Opinion

  • EU’s Donald Tusk says Trump agrees Brexit is ‘an incident not a trend’.
  • The president of the European council, Donald Tusk, has claimed he convinced Donald Trump that Brexit is an “incident not a trend” and that the EU27 is more united than ever.
  • UK premier uses first meeting with French president to push for parallel negotiations.

Theresa May has told Emmanuel Macron that Britain will not pay a Brexit divorce bill until talks on our future relationship with the bloc start.

The Prime Minister and the newly-elected French president smiled warmly for the cameras as they met with other world leaders at the G7 summit in Sicily.

But behind closed doors in bilateral talks Mrs May got tough with Mr Macron, telling him the UK and EU should discuss their future relationship and free trade deal at the same time as  discussing the terms of the withdrawal.

Mr Macron adopted a hard-line on Brexit  during his election campaign, backing EU negotiators who insist there must be progress on UK paying a divorce bill before talks on a new deal can start.

Overall, the bias in prices is: Sideways.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 1.30.

The projected lower bound is: 1.26.

The projected closing price is: 1.28.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 21 black candles for a net of 7 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 22.1611. This is not an overbought or oversold reading. The last signal was a sell 19 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 44.30. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 19 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -171.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 14 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed down -0.015 at 1.279. Volume was 16% below average (neutral) and Bollinger Bands were 54% narrower than normal.

Open   High    Low     Close   Volume
1.294   1.295    1.277   1.279    114,701

Technical Outlook
Short Term:               Neutral
Intermediate Term: Bullish
Long Term:                Bullish

Moving Averages: 10-period    50-period    200-period
Close:                       1.29              1.27               1.26
Volatility:                9                   10                  12
Volume:                  137,063       127,705        139,195

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary
FOREX GBP= is currently 1.6% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of GBP= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on GBP= and have had this outlook for the last 46 periods.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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