British Pound Outlook
UK GDP grew by 1.1 Percent in September and 15.5 Percent in the third quarter, below market estimates; UK Industrial and Manufacturing Production during September also fell short of consensus.
The UK’s Office for National Statistics released the GDP data. GBP/USD trades near two-day lows around 1.3180 and hardly budged after the release; the pair has been under pressure recently from the Brexit-deal uncertainties.
An Irish minister on Wednesday commented that the negotiations between the UK and EU might miss the mid-November deadline for a Brexit deal.
The US dollar strength is in vogue as the US equity futures pulled back; the greenback buying put further pressure on the GBP/USD pair which had slid from two-months-top above 1.3300 printed in the previous day.
BoE Governor Andrew Bailey’s speech and Brexit developments will dictate the action ahead in the GBP/USD. During the US session, market participants will eye the release of consumer inflation figures and Initial Weekly Jobless Claims data.
GBP/US Dollar Exchange Rate
Today’s Forex Rates
GBP/US Dollar FX Polls
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 1.30.
The projected upper bound is: 1.34.
The projected lower bound is: 1.29.
The projected closing price is: 1.31.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
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 44.0700. This is not an overbought or oversold reading. The last signal was a sell 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 55.33. 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 62 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 46. This is not a topping or bottoming area. The last signal was a sell 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 6 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.003 at 1.314. Volume was 60% below average (consolidating) and Bollinger Bands were 18% narrower than normal.
Open High Low Close Volume 1.312 1.315 1.311 1.314 54,013
Technical Outlook 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: 13 12 14 Volume: 154,980 146,962 132,451
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 3.4% 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 22 periods.