British Pound: USD/GBP (GBP=X) continues to consolidate

British Pound: USD/GBP (GBP=X) continues to consolidate

British Pound: USD/GBP (GBP=X) continues to consolidate

The British pound went back and forth during the trading session on Monday, as we continue to dance around in the same consolidation area that we have been in for a couple of weeks. At this point, it’s very likely that the market will be difficult to deal with until we get some type of resolution to the Brexit.

The biggest problem with trading the British pound right now is obviously Brexit, as it continues to cause major issues. After all, it seems to be a bit of a conundrum that traders will have to deal with, as one headline after another throws both optimism and pessimism back and forth as if in some type of tennis match. Ultimately, there will be some type of closure, but we are nowhere near it at this point.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.25.

The projected lower bound is: 1.21.

The projected closing price is: 1.23.

Candlesticks

A black body occurred (because prices closed lower 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 24 white candles and 26 black candles for a net of 2 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 53.3655. This is not an overbought or oversold reading. 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 46.09. 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 37 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 -62. This is not a topping or bottoming area. The last signal was a buy 2 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 8 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed down -0.004 at 1.229. Volume was 39% below average (neutral) and Bollinger Bands were 12% narrower than normal.

Open     High      Low     Close     Volume___
1.232 1.234 1.229 1.229 72,103
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1.23 1.23 1.27
Volatility: 8 9 9
Volume: 105,135 117,075 143,300

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% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 2 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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