British Pound News
Optimism from EU officials that a Brexit deal can be reached helped the Pound Sterling to US Dollar (GBP USD) exchange rate climb higher today. The US Dollar (USD) remains weaker than most other major currencies, making gains easier.
At the time of writing, GBP/USD is trending near the level of 1.35. This is its best levels in two and a half years, since mid-2018.
Sterling (GBP) is climbing on Brexit hopes, but the British currency could plummet again if no deal is reached soon.
The Pound is recovering last week’s losses and climbing higher this week. Today, speculation that a Brexit deal could be close is causing a jump in Sterling demand.
EU officials, including European Commission President Ursula von der Leyen, have taken optimistic stances on Brexit talks. She said today that a path to a deal could be seen.
Speaking at European Parliament, she said:
‘We have found a way forward on most issues but two issues still remain outstanding: the level playing field and fisheries. I am glad to report that issues linked to governance now have largely been resolved. The next days are going to be decisive.’
UK source, responding to @vonderleyen: "We've made some progress but we are still very far apart in key areas"— Adam Parsons (@adamparsons) December 16, 2020
Today’s UK inflation and PMI data was largely overshadowed by Brexit speculation.
Pound US Dollar (GBP USD) Exchange Rate Awaits Outcome of Brexit Talks
Today, markets appear increasingly geared up for a climactic period of UK-EU Brexit negotiations. Speculation is rising once again that a deal could be agreed within the week.
Similarly, markets are betting that US Congress could reach its own deal soon, on fiscal stimulus.
Negotiators in both Brexit talks and US stimulus talks seemingly want a deal more than no deal. For now, investors are optimistic.
However, if UK-EU Brexit talks suddenly collapse or time runs out without enough progress being made, the Pound could slump.
GBP/USD may also fall away from its highs if US stimulus talks fail, as this would boost safe haven demand and the US Dollar.
Tomorrow will also see the Bank of England (BoE) hold its December policy decision. The GBP USD exchange rate will remain focused on Brexit and US fiscal policy news, however.
GBP/US Dollar Exchange Rate
Today’s Forex Rates
GBP/US Dollar FX Polls
Overall, the bias in prices is: Upwards.
The projected upper bound is: 1.38.
The projected lower bound is: 1.33.
The projected closing price is: 1.35.
A white body occurred (because prices closed higher than they opened).
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 22 black candles for a net of 6 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 92.5549. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 14 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 63.58. 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 86 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 buy 0 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.002 at 1.352. Volume was 82% below average (consolidating) and Bollinger Bands were 33% narrower than normal.
Open High Low Close Volume 1.351 1.354 1.349 1.352 24,605
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1.34 1.32 1.28 Volatility: 10 10 13 Volume: 121,998 145,093 135,237
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 6.0% 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 46 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.
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