British Pound: USD/GBP (GBP=X) rallies after court decision

British Pound: USD/GBP (GBP=X) rallies after court decision

British Pound: USD/GBP (GBP=X) rallies after court decision

The British pound has rallied a bit during the trading session on Tuesday as the market reacted to the court decision, which could throw a wrench into the idea of a “no deal Brexit.”

The biggest problem of course is that we have seen this movie before, and quite frankly it just shows how fractured and difficult the British Parliament situation is going to be.

While we have had a nice little bounce on short-term charts, the reality is that there hasn’t been much in the way of confidence building as of late, and even this bounce has been somewhat underwhelming.

Because of this, it’s very likely that we will continue to see negative pressure from a longer-term standpoint until we get a bit of clarity, something that is desperately needed right now.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.27.

The projected lower bound is: 1.23.

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 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

An inverted hammer occurred. If this occurs during a downtrend it implies a reversal. Look for a confirmation of the reversal on the bar.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

A shooting star occurred (a shooting star has a small real body near the bottom of the candle and a long upper shadow). During an uptrend(which appears to be the case with FOREX GBP=) the long upper shadow indicates that the bears are gaining control and a top may occur.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 36.2784. This is not an overbought or oversold reading. The last signal was a sell 3 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 59.36. 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 29 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 69. This is not a topping or bottoming area. The last signal was a sell 3 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 29 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed down -0.000 at 1.249. Volume was 99% below average (consolidating) and Bollinger Bands were 39% wider than normal.

Open     High      Low     Close     Volume___
1.248 1.250 1.248 1.249 1,211
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1.25 1.23 1.27
Volatility: 11 10 9
Volume: 105,581 116,239 145,203

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 1.9% below 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 22 periods.

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