British Pound: USD/GBP (GBP=X) Plunges as Macron Warns of N0-Deal Brexit Risk

British Pound: USD/GBP (GBP=X) Plunges as Macron Warns of N0-Deal Brexit Risk

British Pound: USD/GBP (GBP=X) Plunges as Macron Warns of N0-Deal Brexit Risk

Comments from French President Emmanuel Macron prompted the Pound Sterling to US Dollar (GBP/USD) exchange rate to lose further ground this afternoon.

As Macron warned that the UK could see a no-deal Brexit if MPs reject Theresa May’s deal once again Pound Sterling (GBP) plunged lower.

With Parliament unlikely to support the deal, which has already seen two rejections, the odds of the UK leaving the EU without a deal next week rose sharply.

The US Dollar (USD), meanwhile, benefited as the latest Philadelphia Fed business outlook index bettered forecasts to rise from -4.1 to 13.7.

Pound Sterling US Dollar (GBP/USD) Exchange Rate Sinks as EU Pushes Back on Brexit Extension

The Pound Sterling to US Dollar (GBP/USD) exchange rate slumped sharply this morning in response to comments from key EU official Guy Verhofstadt.

As Verhofstadt stated that the Brexit deadline should not be extended beyond 22nd May, in order to avoid clashing with European parliamentary elections, the mood towards Pound Sterling (GBP) deteriorated.

With the EU looking set to reject Theresa May’s proposed three-month Brexit extension GBP exchange rates were left on the back foot.

This latest development saw the odds of a no-deal Brexit increase, with markets fearful that the UK could still crash out of the EU without a deal next week.

While UK retail sales data bettered forecasts in February this was not enough to shore up the GBP/USD exchange rate in the face of this fresh bout of Brexit-based anxiety.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.33.

The projected lower bound is: 1.29.

The projected closing price is: 1.31.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 22 white candles and 26 black candles for a net of 4 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 43.9084. This is not an overbought or oversold reading. The last signal was a buy 8 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 48.24. 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 15 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 -67. This is not a topping or bottoming area. The last signal was a sell 14 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 0 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed down -0.009 at 1.310. Volume was 6% above average (neutral) and Bollinger Bands were 16% narrower than normal.

Open High Low Close Volume___
1.319 1.323 1.300 1.310 191,077

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

Moving Averages: 10-period 50-period 200-period
Close: 1.32 1.31 1.30
Volatility: 16 11 11
Volume: 186,267 174,863 179,411

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 1.0% above its 200-period moving average and is in an upward trend. Volatility is high 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 bullish on GBP= and have had this outlook for the last 6 periods.

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