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British Pound News
The British Pound has fallen at the start of a holiday-shortened week, with losses coming despite the positive news out last Thursday that the EU and UK had struck a post-Brexit free trade deal.
The deal puts an end to years of uncertainty and most financial analysts we follow are in agreement that there should be further upside in Sterling over coming days and weeks.
For now however, the ‘buy the rumour, sell the fact’ reaction to the news of an announcement looks to be playing out further:
The Pound-to-Euro exchange rate is trading half a percent lower on the day’s opening at 1.1060, the Pound-to-Dollar exchange rate is trading 0.40% lower at 1.3520.
The EU and UK reached a trade deal on Christmas Eve that means there will be no tariffs placed on the trade in goods between the EU and UK, however the trade in services – which accounts for the majority of UK economic productivity – is largely excluded from the deal.
The deal is far from perfect, being skinny and not including much in important areas such as financial services or even being as good as the status quo. Where previously there has been friction-free trade between the UK and EU for over forty years, now there will be friction.
GBP/US Dollar Exchange Rate
Today’s Forex Rates
GBP/US Dollar FX Polls
Overall, the bias in prices is: Upwards.
The projected upper bound is: 1.37.
The projected lower bound is: 1.33.
The projected closing price is: 1.35.
A white body occurred (because prices closed higher 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 27 white candles and 23 black candles for a net of 4 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 63.6543. This is not an overbought or oversold reading. The last signal was a sell 6 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 55.45. 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 94 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 1 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.004 at 1.349. Volume was 72% below average (consolidating) and Bollinger Bands were 16% narrower than normal.
Open High Low Close Volume 1.345 1.350 1.344 1.349 39,868
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1.35 1.33 1.28 Volatility: 11 11 11 Volume: 127,969 145,134 134,985
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 5.2% above its 200-period moving average and is in an upward trend. Volatility is 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 54 periods.