British Pound: USD/GBP (GBP=X) rallies through key resistance

British Pound: USD/GBP (GBP=X) rallies through key resistance

British Pound: USD/GBP (GBP=X) rallies through key resistance

Hopes of a Brexit breakthrough have helped push GBP/USD through the crucial $1.3118 level. This brings about a greater chance that the pair will move into a more bullish phase, with the previous price action taking on a bullish falling wedge formation. Much of this will be reliant on fundamental factors, with hope of a deal driving upside.

From a technical perspective, the break above $1.3117 provides a more bullish outlook, with the current move lower looking like a retracement before we move higher. However, a break back below $1.2922 would provide a bearish outlook once more.

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 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 21 white candles and 28 black candles for a net of 7 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 85.0391. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 52.82. 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 36 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 2. This is not a topping or bottoming area. The last signal was a buy 2 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 8 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed down -0.000 at 1.309. Volume was 98% below average (consolidating) and Bollinger Bands were 21% narrower than normal.

Open High Low Close Volume___
1.309 1.309 1.308 1.309 3,512

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

Moving Averages: 10-period 50-period 200-period
Close: 1.31 1.30 1.35
Volatility: 9 9 9
Volume: 166,759 168,641 167,366

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 3.0% below its 200-period moving average and is in an downward 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 bearish on GBP= and have had this outlook for the last 0 periods.

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