British Pound: USD/GBP (GBP=X) showing strength
The British pound rallied significantly during the trading session on Wednesday as we awaited the Federal Reserve statement, so therefore it looks as if the market is banking on some type of diabetes when it comes to that announcement.
With the markets waiting for the Federal Reserve to make some type of statement, it makes a lot of sense that the markets are trying to cover positions ahead of time. With the idea of the Federal Reserve becoming much more dovish, it makes sense that the US dollar we give back some of the gains.
However, we also have the Brexit going on so this is probably somewhat short-lived. The question now is whether or not we can break above the massive resistance near the 1.2750 level. That is an area that should be massive resistance.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 1.28.
The projected lower bound is: 1.25.
The projected closing price is: 1.26.
A white body occurred (because prices closed higher 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.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 52.2836. This is not an overbought or oversold reading. The last signal was a buy 1 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 44.39. 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 14 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 -22. This is not a topping or bottoming area. The last signal was a buy 1 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 0 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.001 at 1.265. Volume was 96% below average (consolidating) and Bollinger Bands were 46% narrower than normal.
Open High Low Close Volume___
1.264 1.265 1.263 1.265 7,049
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.26 1.28 1.29
Volatility: 7 7 10
Volume: 115,312 139,681 172,286
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 2.2% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 26 periods.