British Pound Outlook
It’s Super Thursday and this morning’s BoE surprised some in the market by launching more stimulus than expected, in an effort to boost consumer spending. The MPC voted to buy another £150 billion of government bonds pushing the total to £895 billion, while it left rates unchanged at 0.1% and said it did not consider voting to impose negative rates. The Bank forecast a double-dip recession for the UK following the second lockdown being imposed today.
There are still ‘serious gaps’ between the two sides in Brexit talks according to the EU’s Barnier, as a lack of progress pushed EUR/GBP earlier in the session back into the recent range. The 50-day Moving Average has capped gains above 0.9068, with today’s central bank action pushing prices back to the lower part of that range. Brexit talks are set to resume next week as the mid-November ‘final’ deadline approaches – watch for the headlines!
GBP/US Dollar Exchange Rate
Today’s Forex Rates
GBP/US Dollar FX Polls
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1.29.
The projected upper bound is: 1.33.
The projected lower bound is: 1.28.
The projected closing price is: 1.30.
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 26 white candles and 24 black candles for a net of 2 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 65.1249. This is not an overbought or oversold reading. The last signal was a sell 17 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 53.54. 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 56 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 -0. This is not a topping or bottoming area. The last signal was a buy 2 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 5 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.005 at 1.303. Volume was 38% below average (neutral) and Bollinger Bands were 48% narrower than normal.
Open High Low Close Volume___
1.299 1.304 1.293 1.303 81,708
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1.30 1.30 1.27
Volatility: 9 11 14
Volume: 145,639 141,430 130,596
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 2.6% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods.
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 16 periods.