British Pound: USD/GBP (GBP=X) price action now suggests persistent selling bias at higher levels

British Pound: USD/GBP (GBP=X) price action now suggests persistent selling bias at higher levels

British Pound: USD/GBP (GBP=X) price action now suggests persistent selling bias at higher levels

However, the fact that bulls are showing some resilience below the 100-hour & 200-hour SMA confluence region warrants some caution before placing any aggressive bearish bets ahead of the new UK PM Boris Johnson’s first statement in the House of Common.

Meanwhile, technical indicators on the daily chart maintained their bearish bias and have been losing positive momentum on hourly charts, supporting prospects for some renewed selling and the resumption of the prior/well-established downward trajectory. 

Immediate support is now pegged near the 1.2435 horizontal zone, which if broken will reinforce the bearish outlook and set the stage for a move towards challenging the 1.2400 handle before the pair eventually turns vulnerable to break below yearly lows – set last week.

On the flip side, the key 1.2500 psychological mark is likely to act as immediate resistance and is closely followed by the overnight swing higher – around the 1.2520 region, above which the pair might head back towards testing the 1.2555-60 supply zone.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 1.27.

The projected upper bound is: 1.26.

The projected lower bound is: 1.24.

The projected closing price is: 1.25.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 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 43.5731. This is not an overbought or oversold reading. The last signal was a buy 11 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 44.96. 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 buy 11 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 1. This is not a topping or bottoming area. The last signal was a buy 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 4 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed up 0.001 at 1.250. Volume was 45% below average (neutral) and Bollinger Bands were 17% narrower than normal.

Open     High      Low     Close     Volume___
1.248 1.252 1.246 1.250 77,767
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1.25 1.26 1.29
Volatility: 10 7 10
Volume: 109,651 125,952 164,392

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 2.8% below its 200-period moving average and is in an downward 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 bearish on GBP= and have had this outlook for the last 12 periods.

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