British Pound: USD/GBP (GBP=X) rises as Donald Trump criticises Fed
The Dollar fell Tuesday after President Donald Trump lashed out at the Federal Reserve for its recent approach to US monetary policy, prompting fears of a slowdown in the pace at which the central bank raises its interest rate.
In a Reuters interview, Trump said he is “not thrilled” his choice of Fed chair, Jerome Powell, has continued to raise interest rates since taking the bank’s top job in February. And he also claimed the EU and China are manipulating their currencies.
Trump has made no secret of his desire for a weaker Dollar and has previously said he is not a fan of high interest rates, which make his agenda of boosting the US economy more difficult to implement.
The pound is currently trading at $1.283 against the US dollar, with the exchange rate managing to edge away from the day’s opening levels.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 1.30.
The projected upper bound is: 1.31.
The projected lower bound is: 1.27.
The projected closing price is: 1.29.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 21 white candles and 28 black candles for a net of 7 black candles.
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 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 78.8234. This is not an overbought or oversold reading. The last signal was a buy 2 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 46.31. 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 1 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 21. This is not a topping or bottoming area. The last signal was a buy 3 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 buy 0 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.011 at 1.290. Volume was 4% above average (neutral) and Bollinger Bands were 40% wider than normal.
Open High Low Close Volume___
1.279 1.293 1.279 1.290 171,856
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.28 1.31 1.36
Volatility: 8 8 9
Volume: 171,712 171,240 158,419
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 4.8% below its 200-period moving average and is in an downward 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 bearish on GBP= and have had this outlook for the last 24 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.