British Pound: USD/GBP (GBP=X) breakout eyeing initial uptrend resistance
Sterling has surged more than 5.4% off the yearly lows with last week’s advance marking the largest weekly rally since late-January and the largest weekly-range since the post-Brexit October 2016 low. While the broader outlook remains constructive, the immediate advance may be vulnerable as price approach near-term uptrend resistance. These are the updated targets and invalidation levels that matter on the GBP/USD price charts.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 1.24.
The projected upper bound is: 1.30.
The projected lower bound is: 1.26.
The projected closing price is: 1.28.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black 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 88.9300. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 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 70.16. 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 43 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 209.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 3 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 2 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.017 at 1.278. Volume was 5% above average (neutral) and Bollinger Bands were 54% wider than normal.
Open High Low Close Volume___
1.261 1.280 1.260 1.278 123,077
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1.24 1.23 1.27
Volatility: 16 12 10
Volume: 107,287 115,746 142,818
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 0.5% 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 1 periods. Our momentum oscillator is currently indicating that GBP= is currently in an overbought condition.
Latest posts by HEFFX Australia (see all)
- Euro: EUR/USD Struggles - July 13, 2020
- British Pound: GBP/USD Bearish - July 12, 2020
- Agree Realty Corporation (NYSE:ADC) Investors Should Think Twice - July 12, 2020