British Pound: USD/GBP (GBP=X) awaits withdrawal agreement amendents, EU response to Brexit delay request

British Pound: USD/GBP (GBP=X) awaits withdrawal agreement amendents, EU response to Brexit delay request

British Pound: USD/GBP (GBP=X) awaits withdrawal agreement amendents, EU response to Brexit delay request

GBP/USD eclipsed the 1.3000 price level momentarily this morning as the fading risk of no-deal Brexit continues to bolster the cable. Similarly, gains in the British Pound has pushed spot EUR/GBP prices back below the 0.8600 handle. The most recent extension to the Sterling’s sustained advance likely comes despite ongoing Brexit confusion following this weekend’s canceled vote on the latest Brexit Withdrawal Agreement, which forced PM Boris Johnson to formally request an extension to the October 31 Brexit deadline.

UK HOUSE OF COMMONS SPEAKER JOHN BERCOW BLOCKS PARLIAMENT VOTE ON PM BORIS JOHNON’S BREXIT DEAL

Paralleling when the House of Commons was gridlocked over prior UK Prime Minister Theresa May’s Withdrawal Agreement, Speaker John Bercow is once again preventing British MPs from voting on the latest Brexit deal negotiated with the EU. Bercow’s decision to block another meaningful vote on Monday is due to Parliament being prevented from voting on the same motion twice. As such, British MPs will now look to tack on amendments to the Prime Minister’s Brexit bill – likely calling for a confirmatory second referendum or customs union arrangements.

BRITISH POUND (GBP) AWAITS WITHDRAWAL AGREEMENT AMENDMENTS; EU RESPONSE TO BREXIT DELAY REQUEST

Though there is doubt over whether these amendments can find enough backing to reintroduce the recently brokered Brexit Withdrawal Agreement. Parliament will continue to debate Brexit deal amendments in the House of Commons today. PM Johnson hopes to put his Brexit deal up for another meaningful vote later this week and potentially as early as Tuesday. Also, following Boris Johnson’s defeat over the weekend, the PM formally submitted another Brexit extension request to EUCO President Donald Tusk to push back the current October 31 Brexit deadline.

With the original Brexit date initially set for March 29 earlier this year and the EU27 agreeing to kick the can twice already, PM Boris Johnson adamantly claims he will do all he can to “get Brexit done on October 31” and told EU leaders that “further [Brexit] delay is not a solution.” If the ongoing impasse in UK Parliament continues and a frustrated EU27 falls short of unanimously approving another Brexit extension, the British Pound’s recent rally has potential to reverse quickly as no-deal Brexit risk comes back into scope.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 1.25.

The projected upper bound is: 1.32.

The projected lower bound is: 1.27.

The projected closing price is: 1.30.

Candlesticks

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 27 white candles and 23 black candles for a net of 4 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 88.3673. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 7 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 74.61. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 47 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 114.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 6 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed down -0.001 at 1.296. Volume was 2% below average (neutral) and Bollinger Bands were 148% wider than normal.

Open     High      Low     Close     Volume___
1.292 1.301 1.287 1.296 114,803
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1.27 1.24 1.27
Volatility: 16 12 10
Volume: 119,913 116,716 141,949

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.

Summary

FOREX GBP= is currently 1.9% 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 5 periods. Our momentum oscillator is currently indicating that GBP= is currently in an overbought condition.

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