British Pound: USD/GBP (GBP=X) Rate Knocked by Strong US Growth Report

British Pound: USD/GBP (GBP=X) Rate Knocked by Strong US Growth Report

British Pound: USD/GBP (GBP=X) Rate Knocked by Strong US Growth Report

Speculation that the Federal Reserve could still hike US interest rates again this year returned today, pushing the Pound Sterling to US Dollar (GBP/USD) exchange rate lower.

Market demand for the US Dollar (USD) rose following the publication of the latest US growth rate report.

US growth was forecast to slow from 3.4% to 2.4% quarter-on-quarter, but came in at a stronger than expected 2.6%.

Pound to US Dollar Exchange Rate Losses Limited amid Mixed US Dollar Strength

UPDATE: Investors were hesitant to sell the Pound Sterling to US Dollar (GBP/USD) exchange rate too far from its best levels today, and the pair only saw modest losses at the time of writing.

While profit taking dragged on the Pound (GBP), market demand for the US Dollar (USD) was limited as well.

Market jitters about a cautious Federal Reserve and a failed summit between the US and North Korea weighed on US Dollar sentiment.

Fresh strength in the Euro (EUR), the US Dollar’s biggest rival, also limited GBP/USD losses today.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 1.30.

The projected upper bound is: 1.35.

The projected lower bound is: 1.31.

The projected closing price is: 1.33.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 2 black candles for a net of 5 white candles. During the past 50 bars, there have been 26 white candles and 23 black candles for a net of 3 white 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 85.0185. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 10 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 67.28. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 138.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 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 6 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed down -0.004 at 1.327. Volume was 4% below average (neutral) and Bollinger Bands were 27% wider than normal.

Open High Low Close Volume___
1.331 1.332 1.325 1.327 175,273

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 1.31 1.29 1.30
Volatility: 9 10 10
Volume: 169,202 164,076 178,388

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 2.1% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 3 periods.

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