British Pound: USD/GBP (GBP=X) flat as Brexit uncertainty continues to haunt markets

British Pound: USD/GBP (GBP=X) flat as Brexit uncertainty continues to haunt markets

British Pound: USD/GBP (GBP=X) flat as Brexit uncertainty continues to haunt markets

Sterling remained under pressure today as Boris Johnson’s plans to take the UK out of the European Union on October 31were halted by an unyielding parliament. While the House of Commons approved the Prime Minister’s initial Brexit Withdrawal Agreement bill with a majority of 329 to 299, plans to fast-track the deal were rejected by just 14 votes. EU leaders will now decide whether or not to grant the UK an extension to Article 50 in the hopes of preventing a no-deal outcome at the end of the month.

However, Downing Street insist any extension that drags the Brexit saga into January will see the government push for a general election, a move which could drive Sterling low on deepening market uncertainty.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 1.26.

The projected upper bound is: 1.32.

The projected lower bound is: 1.27.

The projected closing price is: 1.29.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white 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 57.8947. This is not an overbought or oversold reading. The last signal was a sell 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 69.10. 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 2 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 69. This is not a topping or bottoming area. The last signal was a sell 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 9 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed down -0.000 at 1.291. Volume was 99% below average (consolidating) and Bollinger Bands were 159% wider than normal.

Open     High      Low     Close     Volume___
1.291 1.292 1.291 1.291 1,566
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1.28 1.24 1.27
Volatility: 13 12 10
Volume: 112,806 114,482 140,374

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 1.6% 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 8 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

Latest posts by HEFFX Australia (see all)