British Pound: USD/GBP (GBP=X) falters at 61.8% retracement

British Pound: USD/GBP (GBP=X) falters at 61.8% retracement

British Pound: USD/GBP (GBP=X) falters at 61.8% retracement

GBP/USD has been gaining ground as markets digest the potential culmination of Brexit talks which have produced a proposal for parliament and EU member states to consider. There is undoubtedly a chance that this could be the beginning of a wider recovery if the agreement was voted through.

However, it is worthwhile noting that there is a very strong chance that it will be rejected, leaving talks in limbo. This possibility is worth considering as it could provide a substantial downward move for sterling. With that in mind, we need to see a break through $1.3167 to provide confidence that markets are willing to run with the bullish side of the story. Until then, there is a chance the sceptics among us will drive GBP/USD lower. Only upon seeing a positive resolution from the UK parliament and EU nations would it seem sensible to gain a more bullish long-term view for sterling.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.32.

The projected lower bound is: 1.27.

The projected closing price is: 1.30.

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 23 black candles for a net of 4 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.

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 31.7025. This is not an overbought or oversold reading. The last signal was a buy 1 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 49.69. 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 62 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 25. This is not a topping or bottoming area. The last signal was a sell 4 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 7 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed up 0.001 at 1.298. Volume was 29% above average (neutral) and Bollinger Bands were 12% wider than normal.

Open High Low Close Volume___
1.298 1.307 1.288 1.298 230,814

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

Moving Averages: 10-period 50-period 200-period
Close: 1.30 1.30 1.34
Volatility: 15 11 9
Volume: 202,633 185,941 174,017

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 3.0% below 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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