British Pound: USD/GBP (GBP=X) off overnight highs as market adopts wait-and-see approach

British Pound: USD/GBP (GBP=X) off overnight highs as market adopts wait-and-see approach

British Pound: USD/GBP (GBP=X) off overnight highs as market adopts wait-and-see approach

The British Pound rose to record fresh multi-month highs against the Euro and rallied towards recent multi-month highs against the Dollar following a last-gasp attempt by the EU and UK to secure a Brexit deal.

Overnight, UK Prime Minister Theresa May flew to Strasbourg to meet European Commission President Jean-Claude Juncker to learn of the final concessions on offer from the EU.

Foreign exchange markets welcomed news that the trip was happening and bid Sterling sharply higher through the London afternoon and evening session in expectation that the EU’s offer would be enough to give the deal a chance of being passed by the UK parliament on Tuesday.

Following talks in Strasbourg – the seat of the EU parliament – it was announced that a new political agreement on Brexit had been reached that includes ‘legally binding’ assurances that the UK cannot be locked into the Irish backstop on an indefinite basis.

European Commission head Jean-Claude Juncker said an updated Brexit deal had been agreed between the EU and UK to try and make the agreement more palatable to UK lawmakers but warned they would not get a third chance to endorse it.

At a joint news conference with May in Strasbourg, Juncker said the amended deal provided “meaningful clarifications and legal guarantees” before votes in the House of Commons on Tuesday.

The Pound-to-Euro exchange rate rallied towards 22-month highs at 1.1792, before retreating to be quoted at 1.1727 at the current time. The Pound-to-Dollar exchange rate rallied to a high at 1.3284 before paring gains back to 1.3197.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 1.30.

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 3 white candles and 6 black candles for a net of 3 black candles. During the past 50 bars, there have been 24 white candles and 24 black 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 55.0228. This is not an overbought or oversold reading. The last signal was a buy 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 58.35. 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 8 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 52. This is not a topping or bottoming area. The last signal was a sell 7 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 3 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed up 0.005 at 1.320. Volume was 41% below average (neutral) and Bollinger Bands were 25% wider than normal.

Open High Low Close Volume___
1.315 1.329 1.314 1.320 107,832

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

Moving Averages: 10-period 50-period 200-period
Close: 1.32 1.30 1.30
Volatility: 9 10 10
Volume: 173,210 169,355 178,238

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 1.7% above its 200-period moving average and is in an upward trend. Volatility is 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 11 periods.

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