$GBP #BritishPound #Pound #FX #Currency #Markets #Trade
The British pound rallied initially during the week, breaking above the 1.2650 level before pulling back. The 1.25 level underneath has offered a significant amount of support as we drove down towards there, which makes quite a bit of sense as it may be a large, round, psychologically significant figure and an area that has previously been resistance. the fact that we pulled back down there and bounced a bit tells me that this market isn’t quite ready to make a move. If we were to break down below that level, then it opens up a move down towards the 1.2250 level, where I see a great deal of buying pressure as well.
On the other hand, if we can finally break above the 1.2750 level, it opens up a move towards the 1.30 level. That would be massive in its implications, as it could give us an idea as to a complete trend change. I think we continue to see a lot of noise due to the fact that the United Kingdom has a whole slew of problems, not the least of which will be Brexit. After that, you have to pay attention to the Federal Reserve and what it is doing to the US dollar via quantitative easing. I think because of this the pair will eventually grind higher, but quite frankly it is not something that I believe offers as much alpha as a move would in the Euro, or perhaps the New Zealand dollar.
GBP/US Dollar Exchange Rate
Today’s Forex Rates
GBP/US Dollar FX Polls
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1.25.
The projected upper bound is: 1.28.
The projected lower bound is: 1.24.
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 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 23 black candles for a net of 3 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 45.8554. This is not an overbought or oversold reading. The last signal was a sell 5 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 54.79. 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 26 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 23. This is not a topping or bottoming area. The last signal was a sell 4 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 9 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.002 at 1.257. Volume was 11% below average (neutral) and Bollinger Bands were 57% narrower than normal.
Open High Low Close Volume 1.255 1.257 1.251 1.257 118,142
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bearish
Moving Averages: 10-period 50-period 200-period Close: 1.26 1.24 1.27 Volatility: 6 10 13 Volume: 120,235 134,178 118,109
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 1.1% below its 200-period moving average and is in an downward 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 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 2 periods.
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