British Pound Outlook
Maroš Šefčovič – the Vice-President of the European Commission highlighted the lack of trust which is reflected in Britain´s Internal Market Bill and insisted that the full implementation of the Withdrawal Bill was not optional or debatable. Given his knowledge of Brexit talks and he has influence over sterling.
His comments sent GBP/USD lower from 1.30. Chief EU Negotiator Michel Barnier is in London for further trade talks. Further comments from the EU and the UK are expected and will likely move the Pound.
Rising COVID-19 cases in the UK is adding pressure to the Pound. Fears are growing that London could see restrictions tighten or even a lockdown to stem the spread of the virus. An Excel glitch meant 16,000 cases were missed -yet another embarrassment for Prime Minister Boris Johnson’s government. Any tightening of restrictions could drag on the Pound.
In the US, President Donald Trump was discharged from hospital and returned to the White House, although his doctors say he is not completely out of the woods yet.
Fiscal stimulus is almost more in focus than the elections. Speaker of the House Nancy Pelosi and Treasury Secretary Steven Mnuchin will speak again as talks continue. Cautious optimism is growing that the two sides will be able to agree a stimulus deal,particularly given that the US economic recovery appears to be slowing.
Federal Reserve Chairman Jerome Powell is due to speak about the economy later today. The Fed Chair is likely to reiterate the pledge to keep rates near 0 until 2023. However, he is unlikely to commit to additional; bond buying with the US elections so close.
Politics remain the key focus.
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: 1.31.
The projected lower bound is: 1.27.
The projected closing price is: 1.29.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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 53.9793. This is not an overbought or oversold reading. The last signal was a buy 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 47.08. 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 35 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 29. This is not a topping or bottoming area. The last signal was a buy 8 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 5 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.000 at 1.288. Volume was 74% below average (consolidating) and Bollinger Bands were 45% narrower than normal.
Open High Low Close Volume 1.288 1.289 1.286 1.288 33,911
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1.29 1.30 1.27 Volatility: 7 11 14 Volume: 143,627 126,977 125,691
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 1.3% above its 200-period moving average and is in an downward trend. Volatility is low 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 bearish on GBP= and have had this outlook for the last 20 periods.