British Pound: USD/GBP (GBP=X) looks as if we are trying to continue the downward momentum

British Pound: USD/GBP (GBP=X) looks as if we are trying to continue the downward momentum

The British pound initially tried to rally during the trading session on Monday but has found the 1.2750 level to be too much in the way of resistance yet again. That being the case, it looks as if we are trying to continue the downward momentum.

The British pound has shown signs of negativity during the trading session on Monday after initially reaching towards the 50 day EMA. By rolling over the way we have, we look likely to form a bit of a shooting star at a resistive area. The 1.2750 level has been a problem for some time, but I do recognize that if we were to turn around and break above the 1.28 level, the British pound would be a currency that you do want to own, at least in the short term and up to the 1.30 level.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.29.

The projected lower bound is: 1.26.

The projected closing price is: 1.27.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 19 white candles and 31 black candles for a net of 12 black 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 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 90.8346. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 4 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 52.12. 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 buy 17 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 80. This is not a topping or bottoming area. The last signal was a buy 4 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 buy 3 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed down -0.001 at 1.273. Volume was 96% below average (consolidating) and Bollinger Bands were 37% narrower than normal.

Open High Low Close Volume___
1.274 1.274 1.273 1.273 6,036

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

Moving Averages: 10-period     50-period     200-period
Close: 1.27 1.28 1.29
Volatility: 7 7 10
Volume: 116,503 138,158 171,841

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 1.5% below its 200-period moving average and is in an downward trend. Volatility is 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 29 periods.

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