British Pound: USD/GBP (GBP=X) recovers and threatens to push higher
The Pound to Dollar exchange rate is trading at 1.2935 at the start of the new week after rising 0.87% in the week before. Studies of the charts suggest the short-term uptrend will probably extend, particularly now a break above the major trendline has been confirmed.
The daily chart shows the next upside target at 1.3200, reachable if the pair can successfully break above the 1.3135 target, rise a further 25 pips, and then break above 1.3160.
The 1.3200 target based on the hight of the move prior to the trendline break (x) extrapolated higher (y) – a technical method of ascertaining the likely reach of a follow-through following a trendline break.
The recovery over the last week has been sluggish, however, raising the risk the pair may simply continue to meander sideways.
The daily chart is used to analyse the medium-term trend, which is the next week to month of price action.
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: 1.29.
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 76.6991. 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 66.80. 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 77. 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 -0.000 at 1.293. Volume was 98% below average (consolidating) and Bollinger Bands were 80% wider than normal.
Open High Low Close Volume___
1.294 1.295 1.292 1.293 2,269
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: 99,413 113,194 138,029
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 1.7% 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.