Trading Brexit GBPUSD

Trading Brexit GBPUSD

Trading Brexit GBPUSD

 

Brexit traders are betting heavily that the UK will stay in the EU as always in this situation the best trade will come from the over reaction on the result, if the UK stays in the EU the GBP will surge, sell that rally! Conversly if the UK exits the EU the GBP will fall, buy that dip!

Brexit has been moving the technicals, here is how it looks

GBP= closed up 0.012 at 1.482. Volume was 28% below average (neutral) and Bollinger Bands were 35% wider than normal.

Open High Low Close Volume___
1.470 1.495 1.470 1.482 78,398

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

Moving Averages: 10-period 50-period 200-period
Close: 1.44 1.45 1.47
Volatility: 20 12 11
Volume: 114,258 110,467 97,493

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 1.0% 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 1 periods.

 

HEFFX Momentum

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 85.5710.  This is an overbought reading.  However, a signal is not generated until the Oscillator crosses below 80  The last signal was a  buy 6 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 64.40.  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 buy 83 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 141.This is an overbought reading.  However, a signal isn’t generated until the indicator crosses below 100.  The last signal was a buy 4 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 buy  3 period(s) ago.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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