British Pound: USD/GBP (GBP=X) Pulls Back Slightly Before Continuing Higher
The British pound has pulled back slightly during the training session on Monday to show signs of life again, as the 1.30 level of course offers a significant amount of psychological resistance.
The British pound continues to go back and forth during the trading session on Monday, as we see a lot of noise just below the 1.30 level. That large, round, psychologically significant figure of course attracts a lot of attention, and therefore it’s not a huge surprise to see that the market may struggle in that area. However, if we are to close above the 1.30 level on a daily chart, that would be a good sign that we are ready to go much higher. At this point, pullbacks to the 200 day EMA should be buying opportunities as the market will of course pay quite a bit of attention to that indicator as well.
If the market was to break down below the 200 day EMA, then it will start looking towards the 1.25 level underneath. At that point, there is a lot of structural noise and of course the large, round, psychologically significant figure comes into play, just as it does at the 1.30 level. Looking at this chart though, it certainly has been very bullish, and it looks likely that traders will continue to pay attention to the overall trend.
The British election nonsense of course will take front and center, but ultimately the market is likely going to continue grinding higher given enough time, we simply need the catalyst at this point. With a softening Federal Reserve, and perhaps some good news coming out the United Kingdom, that could be what happens next. However, in the short term it looks like we will probably chop around.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 1.26.
The projected upper bound is: 1.31.
The projected lower bound is: 1.27.
The projected closing price is: 1.29.
A black body occurred (because prices closed lower 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 26 white candles and 24 black candles for a net of 2 white candles.
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 66.4077. This is not an overbought or oversold reading. The last signal was a sell 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 61.94. 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 9 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 25. This is not a topping or bottoming area. The last signal was a sell 9 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 4 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed down -0.006 at 1.288. Volume was 21% below average (neutral) and Bollinger Bands were 78% wider than normal.
Open High Low Close Volume___
1.294 1.295 1.287 1.288 91,887
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1.29 1.25 1.27
Volatility: 7 12 10
Volume: 108,375 114,987 138,477
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 1.3% 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 moderate flows of volume into GBP= (mildly bullish). Our trend forecasting oscillators are currently bullish on GBP= and have had this outlook for the last 15 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.