Britain Walking Out On BREXIT – British Pound (£) ⇨ US Dollar ($) (GBPUSD)
- Bullish on GBP once Brexit starts? GBP/CAD, GBP/NZD have been trading higher.
- Bearish on GBP once Brexit starts? EUR/GBP, GBP/CHF, GBP/JPY are your go-to options.
Britain will walk out of Brexit talks unless Brussels drops its demand to charge €100bn (£86bn) to leave the EU, David Davis has warned.
The Brexit Secretarysaid negotiations would be plunged into “crisis” from the start because the EU refused to discuss a trade deal until Britain agreed to pay the “Brexit bill”.
Following requests from several member states, EU negotiators revised their initial calculations to increase the liabilities the UK must help pay for.
They include payment of farm subsidies and EU administration fees, which could continue after the UK officially leaves the Union until 2020.
Overall, the bias in prices is: Upwards.
Short term: Prices are moving.
Intermediate term: Prices are ranging.
The projected upper bound is: 1.32.
The projected lower bound is: 1.29.
The projected closing price is: 1.31.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 31 white candles and 18 black candles for a net of 13 white candles.
An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.
If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with FOREX GBP=), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.
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 72.9478. This is not an overbought or oversold reading. The last signal was a sell 14 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 66.94. 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 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 163.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. 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 sell 9 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.010 at 1.303. Volume was 7% below average (neutral) and Bollinger Bands were 54% narrower than normal.
Open High Low Close Volume
1.293 1.304 1.293 1.303 127,232
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1.29 1.27 1.26
Volatility: 6 10 12
Volume: 124,639 128,123 138,430
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 3.5% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into GBP= (mildly bullish). Our trend forecasting oscillators are currently bullish on GBP= and have had this outlook for the last 41 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.
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