British Pound: USD/GBP (GBP=X) Looks for Footing in Nervous Markets
GBP/USD has posted slight gains on Wednesday, erasing much of the losses seen in the Tuesday session. Currently, the pair is trading at 1.3154, up 0.26% on the day.
Pound Looks for Footing in Nervous Markets
The U.S. drone attack which killed an Iranian general last week has shaken up the markets, and the pound has been marked by swings in both directions this week. The currency may have trouble finding its footing this week, as nervous investors follow developments in the Middle East. Given the extremely tense situation, I would counsel caution on the part of traders, as the markets remain unsettled. Iran attacked several military bases in Iraq on Wednesday, and a response from the U.S. could further unnerve investors and boost the safe-haven U.S. dollar.
The 1.3150 line remains relevant this week. Currently, this line is under pressure in support and could be tested during the day. This is followed by 1.3050. Below, there is support at 1.30, which has psychological significance. On the upside, we find resistance at 1.3220, followed by the round number of 1.3300.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1.33.
The projected lower bound is: 1.29.
The projected closing price is: 1.31.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 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 26.6876. This is not an overbought or oversold reading. The last signal was a sell 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 49.16. 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 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 -16. This is not a topping or bottoming area. The last signal was a buy 10 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 1 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed down -0.003 at 1.306. Volume was 4% above average (neutral) and Bollinger Bands were 6% narrower than normal.
Open High Low Close Volume___
1.310 1.312 1.301 1.306 108,394
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1.31 1.30 1.27
Volatility: 11 9 9
Volume: 91,528 97,251 119,368
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 3.0% above its 200-period moving average and is in an upward trend. Volatility is high 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 7 periods.