British Pound: USD/GBP (GBP=X) Expected to Trade Sideways

British Pound: USD/GBP (GBP=X) Expected to Trade Sideways

The British pound went back and forth against the US dollar during trading on Tuesday, as we continue to bounce around. It makes sense of the Brexit of course steals all the headlines but at the end of the day we also have to worry about global trade. If the global trade situation gets worse, US treasuries tend to outperform. If that’s going to be the case that obviously the US dollar will as well as it takes US dollars to buy those notes.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 1.29.

The projected upper bound is: 1.28.

The projected lower bound is: 1.25.

The projected closing price is: 1.26.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 18 white candles and 32 black candles for a net of 14 black candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 33.6574. This is not an overbought or oversold reading. The last signal was a buy 3 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 29.90. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 3 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 -78. This is not a topping or bottoming area. The last signal was a buy 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 12 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed up 0.000 at 1.265. Volume was 97% below average (consolidating) and Bollinger Bands were 66% wider than normal.

Open High Low Close Volume___
1.265 1.266 1.265 1.265 4,126

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1.27 1.30 1.30
Volatility: 5 7 10
Volume: 124,010 153,436 174,884

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.

Summary

FOREX GBP= is currently 2.3% below 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 moderate flows of volume out of GBP= (mildly bearish). Our trend forecasting oscillators are currently bearish on GBP= and have had this outlook for the last 10 periods. Our momentum oscillator is currently indicating that GBP= is currently in an oversold condition.

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