British Pound: USD/GBP (GBP=X) Finishes Week Flat
The British pound went back and forth during the week, breaking higher, but it could not break above the top of the shooting star from the previous week. We then broke down a bit but found plenty of support at the 1.30 level. Ultimately, the market is still hanging around the same area, so it looks to me as if the market is trying to build up enough momentum to finally break out to the upside. That being said, this is a market that could very well find quite a bit of support based upon the previous bullish flag that is so prominent on this chart.
Furthermore, if we were to break above the shooting star from the previous week, that would be a very bullish sign, as it would not only show upward momentum again, but would also break the top of a shooting star which is almost always a bullish sign as it shows a lot of sellers getting trapped. Ultimately, 1.35 will be the prize but if we can break above there this market could really start to take off. The British pound of course will be very noisy, but as the Brexit is negotiated, it should continue to stabilize the British pound going forward and habit rally based upon the fact that it is historically cheap. If we were to break down below the 1.28 handle though, that could change a lot of things as it would be a significant loss of confidence when it comes to the British pound. All things being equal, I am bullish, but I recognize that it takes some time to turn things around.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1.32.
The projected lower bound is: 1.29.
The projected closing price is: 1.30.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 23 white candles and 25 black candles for a net of 2 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 20.4998. This is not an overbought or oversold reading. The last signal was a sell 6 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 46.77. 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 19 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 -66. This is not a topping or bottoming area. The last signal was a buy 12 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 3 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed down -0.003 at 1.303. Volume was 96% below average (consolidating) and Bollinger Bands were 28% narrower than normal.
Open High Low Close Volume___
1.305 1.306 1.302 1.303 4,160
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1.31 1.30 1.27
Volatility: 10 9 9
Volume: 84,326 95,406 118,329
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 2.7% 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 1 periods.