British Pound: USD/GBP (GBP=X) – British Pound Continues To Press Onward

British Pound: USD/GBP (GBP=X) – British Pound Continues To Press Onward

British Pound: USD/GBP (GBP=X) – British Pound Continues To Press Onward

The British pound has rallied a bit during the trading session on Monday, continuing to follow through from the massive move on Friday. That being said, it is running into a little bit of resistance, and therefore a slight pullback makes quite a bit of sense. The 50 day EMA underneath should continue to lift this market, as it is a major indicator that a lot of traders will follow. All things being equal, this is a market that continues to be one that you can buy on the dips, and I do plan on doing that going forward. However, with Wednesday being New Year’s Day, it’s very likely that we have a lot of traders simply sitting on the sidelines.

Beyond that, you also have to pay attention to the greenback on the other side of the equation, which of course will be influenced by the jobs number coming out on the 10th instead of the first Friday, which means that we could have a relatively light amount of influence on the greenback between now and then. Nonetheless though, the technical analysis is bullish so therefore I will be looking for opportunities to pick up the British pound “on the cheap”, and therefore look at this as a value play. I have no interest in shorting, unless of course we break down below the bottom of the flag which is closer to the 1.28 handle. If we do break down below there then I think the British pound goes to the 1.25 handle, but it’s much more likely that this market goes looking towards 1.35 handle above.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1.33.

The projected lower bound is: 1.30.

The projected closing price is: 1.31.

Candlesticks

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 27 white candles and 21 black candles for a net of 6 white candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

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 83.8662. 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 57.28. 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 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 15. This is not a topping or bottoming area. The last signal was a buy 3 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 sell 9 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed up 0.000 at 1.312. Volume was 96% below average (consolidating) and Bollinger Bands were 10% narrower than normal.

Open     High      Low     Close     Volume___
1.311 1.312 1.311 1.312 4,555
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1.30 1.30 1.27
Volatility: 7 8 9
Volume: 84,333 98,092 122,433

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 3.4% 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 0 periods.

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