British Pound: USD/GBP (GBP=X) Moves Close to 1.3000

British Pound: USD/GBP (GBP=X) Moves Close to 1.3000

British Pound: USD/GBP (GBP=X) Moves Close to 1.3000

GBP/USD has started the new trading week with gains. In the North American session, the pair is trading at 1.2969, up 0.38% on the day. The Rightmove Housing Price Index declined by 1.3%, its fourth decline in five months. The pound is within striking distance of 1.3000, which has psychological significance. GBP/USD is currently at its highest level since October 22. The pair climbed 1.0% last week, despite soft consumer spending and inflation data. Still, the uncertainty over the upcoming election and Brexit are likely to weigh on the British currency.

Technical Analysis

GBP/USD tested resistance at 1.2910 on Friday and the pair has pushed higher on Monday. The pair is within striking distance of 1.3000, a resistance line that has psychological significance. Above, we find resistance at 1.3100. On the downside, there is support at 1.2810

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1.32.

The projected lower bound is: 1.28.

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 26 white candles and 23 black candles for a net of 3 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 82.6357. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 6 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 64.81. 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 20 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 115.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 6 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 sell 15 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed up 0.000 at 1.295. Volume was 86% below average (consolidating) and Bollinger Bands were 63% narrower than normal.

Open     High      Low     Close     Volume___
1.295 1.296 1.294 1.295 16,177
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1.29 1.26 1.27
Volatility: 6 11 10
Volume: 88,060 107,650 134,210

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 2.0% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 26 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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