British Pound: USD/GBP (GBP=X) – British PM Johnson Is Taken To Hospital Due To Coronavirus
GBP/USD breached the 20 EMA below 1.2300 but the British pound is showing some signs of strength and tries to gain more ground amid optimism on the coronavirus front.
British Prime Minister Boris Johnson was taken to the hospital with persistent coronavirus symptoms as he has been ill for 10 days. His Downing Street office stated that his admission to the hospital was a precautionary step. The news did not cause any material weakness in the British Pound.
Meanwhile, the U.S. dollar is flat against a broad basket of currencies after the U.S. Dollar Index attempted to get through the 101 level. While the total number of coronavirus cases in the world continues to grow, the market sees some light at the end of the tunnel – S&P 500 futures are currently gaining as much as 4%.
The risk-on mode is typically bearish for the U.S. dollar during the current crisis since the American currency serves as a safe haven asset of last resort. It remains to be seen whether the current upside in the markets would be sustainable as it’s still too early to talk about lifting virus containment measures in developed economies.
According to data from Johns Hopkins University, the U.S. has already accumulated 337,637 coronavirus cases, while the UK has accumulated 48,440 cases. Unemployment data which was released last week showed that the crisis dealt a heavy blow to the economy, so investors and traders should expect that upcoming economic releases would look grim.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 1.26.
The projected lower bound is: 1.18.
The projected closing price is: 1.22.
A white body occurred (because prices closed higher 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 22 white candles and 28 black candles for a net of 6 black candles.
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 20.2813. This is not an overbought or oversold reading. The last signal was a sell 2 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 46.46. 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 10 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 34. This is not a topping or bottoming area. The last signal was a buy 10 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 7 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.002 at 1.225. Volume was 80% below average (consolidating) and Bollinger Bands were 123% wider than normal.
Open High Low Close Volume___
1.223 1.227 1.216 1.225 22,361
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.23 1.26 1.27
Volatility: 21 21 14
Volume: 137,104 123,912 112,581
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 3.2% below 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 62 periods.