British Pound: USD/GBP (GBP=X) back to $1.28

British Pound: USD/GBP (GBP=X) back to $1.28

British Pound: USD/GBP (GBP=X) back to $1.28

While GBP/USD has rallied hard from the low of last week, the bounce has run into selling around the $1.28 level, as it did at the end of December.

If this holds once again then we can expect the $1.2635 and $1.259 zones to be challenged. A close above $1.281 brings $1.285 and $1.289 into view.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 1.30.

The projected lower bound is: 1.25.

The projected closing price is: 1.27.

Candlesticks

A black body occurred (because prices closed lower 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 25 white candles and 25 black candles.

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 83.9155. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 19 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 50.64. 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 buy 101 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 90. This is not a topping or bottoming area. The last signal was a sell 0 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 14 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed down -0.006 at 1.272. Volume was 33% below average (neutral) and Bollinger Bands were 45% narrower than normal.

Open High Low Close Volume___
1.278 1.280 1.271 1.272 125,306

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1.27 1.28 1.31
Volatility: 10 12 10
Volume: 144,818 191,217 175,800

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 3.2% below its 200-period moving average and is in an upward trend. Volatility is relatively normal 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.

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