British Pound: USD/GBP (GBP=X) looks even gloomier than a week ago
The future of the British pound looks even gloomier than a week ago. The statements of the British Secretary of State for International Trade Liam Fox about 60% probability of a hard version of Brexit sounded in unison with the speech of the head of the Bank of England Mark Carney and strengthened the pessimism of the market.
Last week, most analysts (70%) predicted a decline of the GBP/USD to the minimum values of the summer of 2017, which was what happened. The weekly low was fixed at 1.2720, and the end of the five-day period was at 1.2765.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 1.32.
The projected upper bound is: 1.29.
The projected lower bound is: 1.26.
The projected closing price is: 1.27.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 0 white candles and 10 black candles for a net of 10 black candles. During the past 50 bars, there have been 20 white candles and 30 black candles for a net of 10 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 10.6218. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 16 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 23.60. This is where it usually bottoms. 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 buy 31 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 -137.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 15 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 6 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed down -0.001 at 1.275. Volume was 98% below average (consolidating) and Bollinger Bands were 17% wider than normal.
Open High Low Close Volume___
1.277 1.278 1.274 1.275 2,994
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.29 1.32 1.36
Volatility: 5 8 9
Volume: 148,741 167,441 156,448
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.
FOREX GBP= is currently 6.0% below 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 moderate flows of volume out of GBP= (mildly bearish). Our trend forecasting oscillators are currently bearish on GBP= and have had this outlook for the last 18 periods. Our momentum oscillator is currently indicating that GBP= is currently in an oversold condition.