British Pound News
The Pound-to-Dollar exchange rate had its wings clipped last week after investors were spooked by rhetoric from Brexit negotiators but it could join the Euro and other currencies in clocking multi-year highs over the coming days as the two sides edge toward an agreement.
Sterling was the second worst performing major currency for the week by Friday’s close after Prime Minister Boris Johnson and others spoke of “important differences” between the two sides in the Brexit negotiations, which tempered earlier optimism that a deal could soon be reached.
But recent indications are all that remains to be determined are terms of an agreement on fisheries access, which was the main focus of both the Prime Minister’s recent statements as well as comments made by Foreign Minister Dominic Raab in an interview with Sky News on Sunday.
Fisheries focus could indicate that thornier issues such as so-called ‘level playing’ field terms on state aid, the environment, taxes, and other matters have been resolved, although neither a European climbdown nor British capitulation has been reported by the political press. One of the two is essential.
The exact timing of any announcement is still a question, but GBP support thus far indicates the market has a positive view – big downside risks if it’s no deal. Upside to 1.40 perhaps on a comprehensive trade deal.
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 1.31.
The projected upper bound is: 1.35.
The projected lower bound is: 1.31.
The projected closing price is: 1.33.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 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 53.6161. 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 61.85. 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 73 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 65. 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 17 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.002 at 1.334. Volume was 86% below average (consolidating) and Bollinger Bands were 19% narrower than normal.
Open High Low Close Volume 1.331 1.334 1.331 1.334 18,627
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1.33 1.31 1.27 Volatility: 4 10 14 Volume: 134,904 150,262 134,537
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 4.8% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods.
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 33 periods.