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British Pound Outlook
The dollar rebound kicking in is a drag on GBP/USD near term. It is interesting to see that sterling has held up relatively well in the past couple of sessions (at least compared to the euro).
Subsequently, the technical outlook on GBP/USD looks less corrective near term than it does on EUR/USD.
Despite this, a near-term pull lower continues, and this has breached an initial one week uptrend (no real drama for the bulls) and the slip back is now eyeing the breakout support around 1.3265.
There is a band of breakout support between 1.3185/1.3265 on GBP/USD, which is a confluence of support with the two month uptrend (today at 1.3195).
Also add in the support of the rising 21 day moving average (currently 1.3170) which has been a basis of support since early July.
A near-term rolling over on momentum indicators sees the market near term corrective, but for now we see this as all being contained within the positive medium-term outlook.
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 1.29.
The projected upper bound is: 1.35.
The projected lower bound is: 1.31.
The projected closing price is: 1.33.
A black body occurred (because prices closed lower 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 31 white candles and 19 black candles for a net of 12 white 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 black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 37.5869. This is not an overbought or oversold reading. The last signal was a sell 2 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 60.51. 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 12 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 37. 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 4 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed down -0.000 at 1.328. Volume was 79% below average (consolidating) and Bollinger Bands were 9% narrower than normal.
Open High Low Close Volume 1.328 1.330 1.326 1.328 27,015
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1.33 1.29 1.27 Volatility: 9 9 14 Volume: 108,521 119,228 120,117
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 4.2% 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 32 periods.
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