British Pound: USD/GBP (GBP=X) run into some element of support

British Pound: USD/GBP (GBP=X) run into some element of support

British Pound: USD/GBP (GBP=X) run into some element of support

The pound isn’t exactly in demand this morning as a survey from the Institute of Directors (IoD) revealed a -16 per cent drop in confidence among UK business leaders.

Approximately 44 per cent of leaders attributed their falling confidence to concerns about future trade with the EU, highlighting how Brexit uncertainty remains a key issue.

However, given the upside break in EUR/USD, there is a chance that we are going to see a more protracted move to the upside. A rally through $1.2828 would be required to bring about this more bullish short-term view. Until then, there is a good chance we will see the pair turn lower again soon enough.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 1.29.

The projected lower bound is: 1.26.

The projected closing price is: 1.28.

Candlesticks

During the past 10 bars, there have been 3 white candles and 5 black candles for a net of 2 black candles. During the past 50 bars, there have been 20 white candles and 28 black candles for a net of 8 black candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 76.7590. 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 34.81. 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 -28. This is not a topping or bottoming area. The last signal was a buy 3 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 0 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed down -0.000 at 1.279. Volume was 97% below average (consolidating) and Bollinger Bands were 42% wider than normal.

Open High Low Close Volume___
1.279 1.280 1.279 1.279 4,331

Technical Outlook
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: 6 8 9
Volume: 154,959 167,890 157,581

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 5.6% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume out of GBP= (mildly bearish). Our trend forecasting oscillators are currently bearish on GBP= and have had this outlook for the last 24 periods.

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