British Pound: USD/GBP (GBP=X) below Consensus PMI number weakened the pair further
After continuing last day’s plunge rally during the Asian trading session, the GBP/USD managed to follow a range-bound movement. The pair fluctuated between 1.1212 and 1.1191 levels. Street Analysts expect the cable to remain in consolidation mode as the day approaches closing time.
The Cable continues to weigh more on Brexit uncertainties. The GBP/USD loses major strength on fear of a probable hard Brexit i.e. the UK may have to leave the EU without making any sort of deal with the counterparty.
MPs had rejected all the deals for a Brexit that came to their table. May’s deal failed thrice while MP’s alternative deal failed twice. The deadline of April 12 is nearing and things still remain undecided. The European Officials in the meanwhile mentioned that they have got irritated seeing this Brexit drama and want to put a stop end to this Brexit chaos before their elections.
A few moments ago, UK Chartered Institute of Purchasing & Supply and Markit Economics broadcasted the UK Construction PMI below consensus estimation. But the actual index was reported 0.2 percent above the previous numbers. However, the cable was down a few pips following the reports.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1.33.
The projected lower bound is: 1.29.
The projected closing price is: 1.31.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 20 white candles and 28 black candles for a net of 8 black candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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.
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 35.8362. This is not an overbought or oversold reading. The last signal was a buy 16 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 48.73. 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 23 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 -92. This is not a topping or bottoming area. The last signal was a buy 0 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 8 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.001 at 1.311. Volume was 3% above average (neutral) and Bollinger Bands were 15% narrower than normal.
Open High Low Close Volume___
1.310 1.313 1.301 1.311 183,079
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1.31 1.31 1.30
Volatility: 10 11 11
Volume: 182,044 175,498 179,928
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 1.1% above its 200-period moving average and is in an downward 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 bearish on GBP= and have had this outlook for the last 0 periods.
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