British Pound: USD/GBP (GBP=X) looking towards the 1.32 level

British Pound: USD/GBP (GBP=X) looking towards the 1.32 level

British Pound: USD/GBP (GBP=X) looking towards the 1.32 level

The British pound initially pulled back during the trading session on Wednesday but found enough support underneath the turn around and rally significantly. At this point in time it looks as if the market is ready to go looking towards the 1.32 level, and then possibly the 1.33 level after that. This is a market that has been rallying as it looks likely that we are going to see a conservative Parliament.

This gives the markets the ability to perhaps try to continue pricing in the idea of the Brexit actually happening in our lifetime. This is going to continue to be a fluid situation, and as we approach the election results there will probably be a lot of position squaring meaning that the market is going to go back and forth. That being said, pay attention to the election resulted headlines, because quite frankly the more conservative Parliament becomes, the stronger the British pound will become

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 1.28.

The projected upper bound is: 1.34.

The projected lower bound is: 1.30.

The projected closing price is: 1.32.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 29 white candles and 19 black candles for a net of 10 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.

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 79.3180. This is not an overbought or oversold reading. The last signal was a sell 0 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 73.97. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 37 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 97. This is not a topping or bottoming area. The last signal was a sell 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 buy 6 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed up 0.001 at 1.320. Volume was 99% below average (consolidating) and Bollinger Bands were 2% wider than normal.

Open     High      Low     Close     Volume___
1.320 1.321 1.319 1.320 921
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1.31 1.29 1.27
Volatility: 5 10 9
Volume: 84,398 101,780 127,773

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 4.0% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into GBP= (mildly bullish). Our trend forecasting oscillators are currently bullish on GBP= and have had this outlook for the last 3 periods. Our momentum oscillator is currently indicating that GBP= is currently in an overbought condition.

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