British Pound: USD/GBP (GBP=X) showing signs of choppiness and noisy trading

British Pound: USD/GBP (GBP=X) showing signs of choppiness and noisy trading

British Pound: USD/GBP (GBP=X) showing signs of choppiness and noisy trading

The British pound has gone back and forth during the trading session on Thursday, showing signs of choppiness and noisy trading yet again. At this point, it’s very likely that the market will continue to see headlines push the market around.

The British pound has gone back and forth during the trading session on Thursday, showing signs of unsteady behavior and of course trouble when it comes to where we go next with Brexit. However, at this point the market is obviously overextended, but at this point this is a market that should continue to be choppy to say the least.

A pullback would make quite a bit of sense, perhaps down to the 200-day EMA. At this point in time, the market looks likely to need some type of pullback if nothing else just to build up a bit of momentum. All things being equal though, this is a market that will continue to find plenty of reasons to move, not the least of which will be Brexit. We have priced in an avoidance of the worst-case scenario, so at this point the market is waiting to see what happens next.

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: 1.31.

The projected lower bound is: 1.26.

The projected closing price is: 1.29.

Candlesticks

A black body occurred (because prices closed lower 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 26 white candles and 24 black candles for a net of 2 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 53.0659. This is not an overbought or oversold reading. The last signal was a sell 1 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 64.51. 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 2 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 57. This is not a topping or bottoming area. The last signal was a sell 2 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 9 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed down -0.007 at 1.285. Volume was 5% above average (neutral) and Bollinger Bands were 156% wider than normal.

Open     High      Low     Close     Volume___
1.291 1.295 1.279 1.285 122,913
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1.28 1.24 1.27
Volatility: 14 12 10
Volume: 124,941 116,909 140,981

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 1.1% 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 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 8 periods.

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