British Pound: USD/GBP (GBP=X) expect fluctuations on updates on the ongoing Brexit drama

British Pound: USD/GBP (GBP=X) expect fluctuations on updates on the ongoing Brexit drama

British Pound: USD/GBP (GBP=X) expect fluctuations on updates on the ongoing Brexit drama

UK PM Theresa May has arranged last minute meets with the leaders of Germany and France later the day. She will urge the EU leaders to support her get an additional Brexit extension until June 30. In the talks with the EU leaders, she is expected to explain the rationales behind the extension.

In the EU Summit on Wednesday, the officials of 27 EU nations will consider her request and will make a combined decision on approving the Brexit.

If the UK remains until May 23 in the EU consortium, then they will have to take part in the EU elections.

However, the odds of EU Officials rejecting May’s request remains low. The GBP/USD is conquering new heights daily on the expectation of approval from the EU side. Investors need to stay alert on upcoming Brexit headlines.

Key GBP/USD Influencing Event:

By 23:01 GMT, The British Retail Consortium (BRC) will broadcast the Like-For-Like Retail Sales (YoY) for March. These reports denote the performance of the UK’s retail sector. The Market analysts have not stated any estimate over the previous numbers which was at  -0.1 percent.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.33.

The projected lower bound is: 1.29.

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 5 white candles and 5 black candles. During the past 50 bars, there have been 21 white candles and 27 black candles for a net of 6 black candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 33.9653. This is not an overbought or oversold reading. The last signal was a buy 21 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 46.73. 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 28 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 -51. This is not a topping or bottoming area. The last signal was a buy 1 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 13 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed up 0.001 at 1.307. Volume was 48% below average (neutral) and Bollinger Bands were 12% narrower than normal.

Open High Low Close Volume___
1.306 1.312 1.305 1.307 90,392

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

Moving Averages: 10-period 50-period 200-period
Close: 1.31 1.31 1.30
Volatility: 9 11 11
Volume: 174,982 174,262 179,661

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 0.8% above 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 5 periods.

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