British Pound News
GBP/USD probes an intraday high of 1.3665 while filling the downside gap to 1.3650 during the early Asian session on Monday. In doing so, the cable traders remain cautiously optimistic following a Brexit deal passage by the UK’s Parliament as the coronavirus (COVID-19) woes probe bulls.
Despite overcoming the thorny issue of Brexit and getting it through the parliament, the Britons aren’t spared from the divorce issues. Recently, The Telegraph came out with the news suggesting British ex-pats stopped from boarding to Spain amid documentations issues. Travelers were informed that they don’t have correct residential proofs even if “The Foreign, Commonwealth and Development Office (FCDO) had previously stated that Spanish authorities had confirmed that both green residence certificates and the new documentation (TIE), along with valid passports, would be enough proof for people to travel back to Spain,” said the news.
It should, however, be noted that the US dollar weakness amid broad market optimism and rallying equities favor the sterling buyers. Latest updates from the US Congress unveil Nancy Pelosi’s re-election as the US House Speaker, which in turn indicates an easy way for further stimulus. However, Georgia’s electoral runoff will decide the fate of the Senate majority and will be crucial to watch.
Other than the Brexit, virus and US headlines, the UK’s second reading of Manufacturing PMI for December, expected to confirm 57.3 initial estimations, will also be important to watch.
GBP/US Dollar Exchange Rate
Today’s Forex Rates
GBP/US Dollar FX Polls
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 1.32.
The projected upper bound is: 1.39.
The projected lower bound is: 1.35.
The projected closing price is: 1.37.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 3 black candles for a net of 3 white candles. During the past 50 bars, there have been 29 white candles and 20 black candles for a net of 9 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 93.0052. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 10 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 63.43. 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 98 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 3 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.000 at 1.367. Volume was 82% below average (consolidating) and Bollinger Bands were 13% wider than normal.
Open High Low Close Volume 1.366 1.370 1.364 1.367 25,357
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1.36 1.33 1.29 Volatility: 11 10 11 Volume: 106,967 141,665 134,056
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 6.3% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 58 periods.