British Pound News
The GBP/USD pair is rising today in reaction to overnight’s Fed interest rate decision. Traders are also focusing on the upcoming decision by the Bank of England (BOE). The GBPUSD is trading at 1.3542, which is the highest it has been in years.
What happened: Last night, the Fed delivered its rate decision. As most analysts were expecting, the bank decided to leave interest rates unchanged. It also committed to its asset purchases at a pace of $120 billion per month. But it did not give the end-period of the asset purchases.
What next: The GBP/USD will next react to the final BOE meeting of the year. Like the Fed, economists believe that the bank will leave interest rates unchanged at 0.10%. Also, it will continue with asset purchases since it already increased the size by £150 billion in the last meeting.
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: 1.38.
The projected lower bound is: 1.33.
The projected closing price is: 1.36.
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 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 87.4008. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 15 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 63.61. 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 87 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 1 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed down -0.003 at 1.355. Volume was 88% below average (consolidating) and Bollinger Bands were 22% narrower than normal.
Open High Low Close Volume 1.359 1.359 1.355 1.355 16,265
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1.34 1.32 1.28 Volatility: 11 10 13 Volume: 121,683 144,864 135,193
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 6.1% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term.
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 47 periods.