British Pound: USD/GBP (GBP=X) Investors are awaiting the release of the FOMC Minutes

British Pound: USD/GBP (GBP=X) Investors are awaiting the release of the FOMC Minutes

British Pound: USD/GBP (GBP=X) Investors are awaiting the release of the FOMC Minutes

The pound US dollar exchange rate advanced to an almost two-week high yesterday, but the pairing has given up some of those gains today and is currently trading in the region of $1.303. GBP/USD has drifted lower despite President Donald Trump dispelling some of the recent optimism about a US/China trade deal.

Prime Minister Theresa May is in Brussels today to renegotiate aspects of the Northern Irish backstop with the President of the European Commission, Jean-Claude Juncker.

Pound traders are remaining jittery as Mr Juncker played down yesterday’s high expectations, saying that he did not expect a breakthrough.

Mr Juncker further commented at a press conference in Stuttgart yesterday: “There isn’t enough movement for me to be able to expect this to be a discussion with a concrete outcome… I don’t know what Mrs May will communicate to me… [I am unsure what] our British friends would actually like to have.”

Any indications that the Brexit deadlock between the UK and the EU could be broken would prove pound-positive, and with no notable UK data releases due out today, Brexit developments and the FOMC meeting minutes are expected to remain the main catalyst for the GBP/USD exchange rate. 

Overall, the bias in prices is: Upwards.

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 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.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 88.6475. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 4 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 59.03. 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 17 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 118.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 3 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 0 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed down -0.000 at 1.306. Volume was 10% below average (neutral) and Bollinger Bands were 2% wider than normal.

Open High Low Close Volume___
1.306 1.311 1.301 1.306 166,406

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

Moving Averages: 10-period 50-period 200-period
Close: 1.29 1.28 1.30
Volatility: 9 10 10
Volume: 158,779 167,221 178,130

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 0.5% above its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 6 periods.

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