British Pound News
The British pound initially fell during the trading session on Monday, and then started to really sell off as sour headlines came out regarding Brexit talks. This is a market that has much going on at the same time, but it certainly wants to send the British pound higher. There is still a lot of momentum out there for buyers, so the fact that we have rallied the way we have after Boris Johnson announced that he was going to Brussels on Wednesday tells you just how much optimism there is built into the marketplace.
It appears that algorithms went a bit haywire when the negative headlines came out, only to be reversed once Johnson announced he was heading to Europe. You can see that the 1.3250 level has offered support, and it now looks as if the market is probably going to continue to favor buying the dips, and that we will be looking at the 1.35 handle with great interest. If we can finally close above the 1.35 handle, it is likely that we will go much higher, perhaps reaching towards the 1.3750 level. After all, breaking above the 1.35 level would be considered to be a very strong move, and would attract a lot of attention.
To the downside, we have the obvious support at the 1.3250 level that was reiterated during the trading session on Monday, and now the 50-day EMA sits just below there. Because of this, the market is likely to see buyers on those dips, as we have seen during Monday’s trading session. The 1.30 level will be massive support also. The market breaking below the 1.30 level would be a huge turn of events, almost certainly based on the idea of Brexit falling apart completely. While I do not think that is the most likely of outcomes, you need to keep in the back your mind that it is still a possibility considering all of the rhetoric that we have seen over the last couple of days. The shape of the candlestick is very bullish, so it appears that the buyers are going to continue to be rather relentless.
GBP/US Dollar Exchange Rate
GBP/US Dollar FX Polls
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 1.31.
The projected upper bound is: 1.36.
The projected lower bound is: 1.32.
The projected closing price is: 1.34.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 44.8314. This is not an overbought or oversold reading. The last signal was a sell 8 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 57.67. 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 80 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 2 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.001 at 1.337. Volume was 88% below average (consolidating) and Bollinger Bands were 29% narrower than normal.
Open High Low Close Volume 1.335 1.338 1.335 1.337 16,958
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1.34 1.31 1.27 Volatility: 7 10 14 Volume: 129,710 148,389 135,206
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.
FOREX GBP= is currently 4.8% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
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 40 periods.