British Pound: USD/GBP (GBP=X) Rallies Towards Resistance

British Pound: USD/GBP (GBP=X) Rallies Towards Resistance

British Pound: USD/GBP (GBP=X) Rallies Towards Resistance

The bridge pound has rallied a bit during the trading session on Thursday, reaching towards the 1.30 level. This is an area that of course attracts a lot of attention, as it is a large, round, psychologically significant figure.

The British pound has rallied a bit during the trading session on Thursday, showing signs of strength yet again. The one .30 level above is the most recent high, and it is also an area where we have seen a lot of previous action, as it had been previous support. At this point, the market should continue to be very noisy, but it looks as if we are trying to make some type of statement based upon the Brexit being likely accompanied by a deal instead of crashing out. Breaking above the will .30 level could open up the door to the 1.33 handle above.

Underneath, the 200 day EMA sits near the 1.27 level, which could cause a bit of support. Ultimately, the market also has support at the 1.25 level underneath, which is an area where we have seen a lot of structural back-and-forth. Ultimately, buying on dips continues to work with the British pound and the fact that the jobs number comes out on Friday could also provide a bit more momentum in one way or the other involving the greenback.

This could be a bit of a “perfect storm” if we get some type of good news coming out of Brexit which can happen at any given moment due to Twitter driving algorithms back and forth. Either way, this is a market that has seen an impulsive move higher and it certainly looks as if we will continue to go much higher over the longer term.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 1.26.

The projected upper bound is: 1.32.

The projected lower bound is: 1.27.

The projected closing price is: 1.30.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

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.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 77.5148. This is not an overbought or oversold reading. The last signal was a sell 7 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 67.84. 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 8 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 98. This is not a topping or bottoming area. The last signal was a sell 8 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 3 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed up 0.000 at 1.294. Volume was 100% below average (consolidating) and Bollinger Bands were 98% wider than normal.

Open     High      Low     Close     Volume___
1.294 1.295 1.294 1.294 43
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1.29 1.25 1.27
Volatility: 6 12 10
Volume: 99,856 113,209 138,250

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 1.8% 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 14 periods.

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