British Pound: USD/GBP (GBP=X) could rise if the Sterling can catch bid again after dropping to multi-month lows

British Pound: USD/GBP (GBP=X) could rise if the Sterling can catch bid again after dropping to multi-month lows

British Pound: USD/GBP (GBP=X) could rise if the Sterling can catch bid again after dropping to multi-month lows

Taking a look at spot GBPUSD from a broader perspective, we can see that the 1.2600 handle has previously served as a serious level of confluence. While increased selling pressure earlier in the month drove the Pound Sterling below this technical level, which appears to have broken the bullish trend line of its upward climb over the last three years, Fibonacci support near 1.2400 provided by the 76.4% retracement of the forex rate’s 2016 low should not be taken lightly. Also, the noticeably long wicks on the weekly candles might suggest demand for spot GBPUSD at this technical support zone which could imply that a bottom is near.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 1.27.

The projected upper bound is: 1.26.

The projected lower bound is: 1.24.

The projected closing price is: 1.25.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 20 white candles and 30 black candles for a net of 10 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 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 70.8334. This is not an overbought or oversold reading. The last signal was a buy 8 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 43.76. 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 8 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 -13. 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 buy 1 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed up 0.000 at 1.250. Volume was 99% below average (consolidating) and Bollinger Bands were 0% wider than normal.

Open High Low Close Volume___
1.251 1.252 1.250 1.250 1,280

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period     50-period     200-period
Close: 1.25 1.26 1.29
Volatility: 9 7 10
Volume: 105,679 125,832 165,302

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 2.9% below its 200-period moving average and is in an downward trend. Volatility is 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 9 periods.

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